Santander Increase Maximum LTV for New Build Properties

Santander has made a significant move to support first-time buyers by increasing its maximum loan-to-value (LTV) ratio for new build properties to 95%.

Effective from 27th February, Santander became the sole major UK lender to offer 95% LTV mortgages for both new build flats and houses, available through all builders and brokers. The bank will provide a range of five-year fixed rate products within its existing 95% LTV range.

Previously capped at 85% LTV for new build houses and 80% LTV for flats, this expansion aims to ease the financial burden for aspiring homeowners.

Graham Sellar, head of development for mortgages at Santander UK, emphasised the importance of this change, stating it will not only accelerate homeownership but also support the transition to greener living, as most new build properties boast high energy efficiency ratings. This announcement aligns with the 2024 New Homes Week, spearheaded by the Home Building Federation, focusing on promoting new home construction and ownership.

David O’Leary, executive director at the Home Building Federation, hailed Santander’s initiative, noting its pivotal role in addressing the housing shortage and fostering confidence among house builders to deliver more sustainable homes in the future.