There’s some positive news for buyers who are finding it hard to save a large deposit.
Santander has announced the launch of a new 98% loan-to-value (LTV) mortgage, aimed at helping people get onto the property ladder with a much smaller deposit than is usually required.
In simple terms, this means some buyers may be able to purchase a home with just a 2% deposit, making home ownership more achievable for those who can comfortably afford the monthly payments but have struggled to build up savings.
It’s important to note that while the mortgage is advertised as 98% loan-to-value, there is a minimum deposit requirement of £10,000. This means the product is likely to be more suitable for buyers purchasing at higher price points, rather than lower-value properties where 2% alone may fall below this threshold.
As with any high loan-to-value mortgage, there are specific criteria and conditions to be aware of.
These products won’t be suitable for everyone, and affordability checks remain just as important as ever.
Interest rates are also typically higher than on mortgages with larger deposits, so it’s vital to look at the bigger picture rather than just the headline figure.
That said, it’s encouraging to see lenders continuing to introduce new options for first-time buyers and home movers, particularly at a time when saving a deposit remains one of the biggest challenges.
If you’re wondering whether a 98% mortgage could work for you, or you’d like to explore all the options available, Barlow Irvin Financial Services‘ award-winning mortgage experts are on hand for a chat on 01204 208 001.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.
A really good blog and me back again.