"There’s a renewed focus on the new build market spurred on by the Government’s ambition to create 1.5 million new homes, in part through new towns"
- Grahan Sellar - Santander
Santander UK is significantly expanding its mortgage portfolio with the introduction of more than 50 new products, available from Tuesday, 6 May. The latest additions include a substantial focus on new build properties, with 43 new build-specific products now on offer across a wide range of loan-to-value tiers, product lengths, and borrower types.
New build options span from 60% to 95% LTV and include two- and five-year fixed-rate products as well as two-year trackers. Santander is also introducing a £250 cashback incentive for eligible new build borrowers—available to first-time buyers from 85% to 90% LTV, and to home movers at 95% LTV.
Highlights of the new fixed-rate new build range for home movers include a two-year fixed rate at 3.89% and a five-year fixed at 3.92%, both at 60% LTV with a £999 fee. Higher LTV options include an 85% LTV five-year fix at 4.28% (with £999 fee and £250 cashback) and a 95% LTV five-year fix at 4.90% with no fee and £250 cashback.
For first-time buyers, two-year fixed rates start at 3.94% (60% LTV, £999 fee), while higher LTV products, such as the 85% LTV two-year fix at 4.29% (with cashback) and the 95% LTV five-year fix at 4.99% (no fee, cashback) are designed to support affordability.
Santander is also offering a suite of two-year tracker rates for new builds. For home movers, these include a 4.64% rate at 60% LTV and 4.90% at 75% LTV, both with a £999 fee, as well as a 5.54% tracker at 90% LTV with no fee. First-time buyers can access tracker rates of 4.69% (60% LTV), 4.95% (75% LTV), and 5.59% (90% LTV) with the same fee structures.
In addition, Santander has introduced three-year fixed-rate products for the first time. For home movers and FTBs alike, rates start at 4.49% for 85% LTV with a £999 fee and £250 cashback, rising to 5.23% for 95% LTV with no fee and cashback included.
Alongside these launches, Santander has also made interest rate reductions across existing mortgage products, covering the home mover, first-time buyer, remortgage, buy-to-let, and large loans ranges.
The expanded offering comes as Santander’s research reveals strong demand for new-build homes. Nearly three-quarters of prospective first-time buyers and 57% of next-time buyers said they would consider moving to a new-build in one of the UK’s proposed new town developments. Furthermore, 83% of mortgage brokers believe the initiative could reshape the homeownership landscape over the next year.
“There’s a renewed focus on the new build market spurred on by the Government’s ambition to create 1.5 million new homes, in part through new towns," explained head of Santander for Intermediaries, Graham Sellar.
"We’re pleased to bolster our new build offering, alongside new three-year fixes and broad reaching rate reductions, to support our brokers and customers access more options to help them on their homeownership journey.”
