Product Highlight: 98% LTV Santander Mortgages

98% LTV mortgages are now available through Santander, meaning first-time buyers can get on the property ladder with just a 2% deposit. This article breaks down what the product offers, who it suits, and what to watch out for.

For many first-time buyers, there's a real balancing act between living life to the fullest and saving for the future. Nowhere is this felt more than when saving for a deposit, often the single biggest hurdle on the road to homeownership. Santander is looking to change that.

Santander's new 98% LTV mortgage means you only need a 2% deposit to buy your first home. There is a stipulation in that the deposit has to be £10,000 at least, that can get you a property worth up to £500,000. This follows a wider shift away from government-led schemes like Help to Buy, towards lenders driving change themselves, and with 95% LTV previously being the market ceiling, this product is likely to encourage others to follow suit.

It is worth going in with eyes open, though. Some brokers feel the 3% difference over existing 95% products only benefits a narrow group of buyers, and borrowing 98% of a property's value does carry a real risk of negative equity if house prices fall.

To find out what you're eligible for, get in touch with Hello Mortgage today.

Tel: 0800 292 2557

Email: hello@hellomortgage.co.uk

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