Santander have announced today that they are launching new 95% mortgages outside of the governments mortgage guarantee scheme. On Wednesday the 1st of June Santander will be launching 95% loan to value (LTV) mortgages without the need for support from the Government’s mortgage guarantee scheme, which is due to end for new applications on the 31st of December 2022.
The mortgage guarantee scheme was launched by the government in April 2021 with the intention of supporting a new generation to achieve home ownership. This scheme increased the availability of 95% Loan-to-value mortgage products, enabling more households to access mortgages without needing large deposits.
Over the years there have been a few mortgage guarantee schemes helping with low deposit mortgages such as the help to buy mortgage guarantee scheme which ran from 2013 until 2016. But, there has always been a bit of a push back with mortgage lenders offering their own core 95% products due to the perceived risk factor of lending against 95% of a property.
The rates for these 95% mortgage products are as follows:
The two-year fix is priced at 3.34%, the five-year fix at 3.39%, and the two-year tracker at 4.49%. All charge zero fee.
Santander have specifically said:
“Our lending policy for loans above 90% LTV will remain the same as existing lending policy but will be offered independently of the current mortgage guarantee scheme. The 95% LTV standard rates will be the same as our existing MGS products.”
Senior mortgage and protection advisor at Oportfolio Jade Pinkerton had this to say: “This is a great sign in a number of recent updates from Santander that indicate that they are returning to pre-covid lending. The fact that they are introducing higher loan to values and changing criteria for things like self employed people puts them in a really positive light and its exciting to see.”
If you or anyone you know is thinking of getting a mortgage and wants to discuss a possible 95% loan, please feel free to give our friendly advisors a call today.