Santander has recently revealed a range of first time buyer exclusive mortgages, which now include the added benefit of its Homebuyer Solution. This offers a free valuation for mortgage purposes on properties up to £2.5 million plus £250 cashback on completion.
Santander first time buyer mortgage products now come with a 5 year fixed rate of 3.14% at 85% loan to value (LTV) with a £995 booking fee for first time buyers only, as well as a 3.49% 5 year fix at 90% LTV with a £995 fee. Santander also introduced a 2 year fixed rate of 2.59% with a £995 booking fee at 90% LTV, while additionally withdrawing its 2 year fixed 90% LTV zero fee product, exclusive to first time buyers.
Alongside a host of new products, Santander has equally made changes to its existing range, adding £250 cashback benefit onto all existing first time buyer exclusives which already offer free standard valuation. These include its 2 year 1.84% fixed product at 80% LTV with a £995 booking fee, as well as its 1.99% 2 year fixed rate at 85% LTV with the same fee.
Not only revamping its product offering to lend a hand to help to buy borrowers, Santander has also made changes for residential customers, now reducing its loan to income (LTI) cap for those looking to borrow at more than 80% LTV, from 5 times gross income to 4.45 times.
This comes with the intent to allow customers to access an affordable level of borrowing, while protecting them from borrowing beyond their limits and resulting in unnecessary debt.
Following the move of both TSB and Barclays, who announced an LTI cap of 4.5 times income across all mortgage products last year, this decision perhaps reflects the prudent approach of many lenders in line with current market conditions. The bank has reviewed the maximum income multiples for customers seeking to borrow between 80 and 90% the value of their property.