Santander set to launch 95pc LTV

Sarah Davidson

September 11, 2015

The government’s temporary scheme is due to finish in 2016 prompting Santander to signal its early commitment to continuing to lend to borrowers with a 5% deposit beyond the term of the scheme.

Miguel Sard, Santander’s managing director of mortgages, said: “Help to Buy 2 has achieved its goal ahead of its three year term.

“The government’s guarantee scheme has been successful in encouraging lenders to re-enter the 95% LTV space and in giving confidence to prospective borrowers who don’t have a large deposit.

“After almost two years’ lending in the scheme and given the quality of loans issued over the period, we’re ready to extend our commitment to lending up to 95% LTV without the need for government support.”

On 29 September, all new applications above 90% LTV will be undertaken as a standard Santander mortgage and no customers will be impacted as our new policy for loans up to 95% LTV is based directly on the HTB2 policy.

Santander will stop taking HTB2 applications on 28 September 2015, and all applications submitted by this date will still proceed as HTB2.

Sard added: “There is now a healthy market for customers with smaller deposits. Santander will also be offering HTB ISA products later this year, and ISA customers will have access to all of our mortgage products.”

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