Santander offers 98% mortgages for first-timers - with strict rules

One of Britain’s biggest banks launched a mortgage yesterday that allows first-time buyers to borrow up to 98% of the property’s value, but experts said the offer’s strict rules meant many people and property types would be excluded.

- Rupert Jones

Santander said it was the first time in years that a major high street bank had gone beyond the traditional 95% borrowing limit, and some mortgage brokers called it a “bold and significant” move that would help more first-time buyers achieve their homeownership dreams.

The deal, limited to first-time buyers, is a five-year fixed-rate loan requiring a deposit of at least £10,000 and where the maximum amount that can be borrowed is £500,000.