Santander

Santander

April 24, 2012 09:00 ET

Santander Launches New First Time Buyer Mortgages

- New 3 and 5 year fixed rates available for FTBs up to 90% LTV

- Products on offer in branch and on the telephone

LONDON, UNITED KINGDOM--(Marketwire - April 24, 2012) - Santander has launched a range of first time buyer mortgages, to help borrowers trying to get their first step on the property ladder. The new range of mortgages, offers 3 and 5 year fixed rates starting from 4.89%, with LTVs of 85% and 90% and fees as low as £99 instead of the usual £495 or £995 standard fee. All products come with the Homebuyer solution as standard which includes free valuation and £250 cashback on completion, helping customers with the upfront costs of purchasing a property. The products include:

  • 85% LTV 3 year fixed at 4.89% with a £99 fee
  • 90% LTV 5 year fixed at 5.99% with a £99 fee

Phil Cliff, Director of Santander Mortgages said: "Getting a foot on the ladder is a tough task for first time buyers against the backdrop of a sluggish property market. Now that the Stamp Duty holiday has ended, first time buyers are finding it even harder. Our new range of mortgages is designed to help them, with very low fees and some of the most competitive rates available."

As the latest figures show1, the number of first time buyers purchasing their first home in February 2012 has increased with 14,100 loans worth £1.7 billion taken out by first-time buyers, up 8% by number and 6% by value from January 2012 and up 18% by number and 21% by value on last February.

Santander Mortgages research suggests that first time buyers have saved an estimated £319 million2 as a result of the stamp duty holiday which came into play in March 2010 and is estimated to have benefitted roughly 170,000 new home owners.

For more information on the new first time buyer mortgages visit your local branch, telephone 0800 068 6564.or log on to Santander.

The information contained in our press releases is intended solely for journalists and should not be used by consumers to make financial decisions.

Notes to Editors

1) CML figures from February 2012.
2) Analysis of data from the Council of Mortgage Lenders, 2012.
The £319 million saving is calculated as follows: 170,014 mortgages were issued to first time buyers for properties valued at between £125,000 and £250,000 from 1st April 2010 to 31st December 2011. It is estimated that the total value of these property sales equates to £31,877,711,162 and 1% of this (£318,777,112) would have been paid in stamp duty had the exemption not occurred, based on the 2012 stamp duty requirements.

About Us

Santander UK plc is a full-service retail and commercial bank providing services to 25 million customers, with more than 1,400 branches and 28 regional business centres. It is a wholly owned subsidiary of Banco Santander. Santander UK plc manages its affairs autonomously, with its own local management team, responsible solely for its performance. Over 85% of the assets on Santander UK plc's balance sheet are UK based and it is subject to full supervision of the Financial Services Authority (FSA) in the UK. Santander UK plc customers are protected by the Financial Services Compensation Scheme (FSCS) in the UK.

Sovereign exposures to Europe (excluding UK) as at September 2011 are not significant at less than 1% of total assets and primarily relate to Swiss government. Total exposure to periphery countries is c. 0.5% of total assets.

Banco Santander (SAN.MC, STD.N, BNC.LN) is a retail and commercial bank, based in Spain, with a presence in 10 main markets. Santander is the largest bank in the euro zone and is among the fifteen in the world by market capitalization. Founded in 1857, Santander had EUR 1.383 trillion in managed funds, more than 102 million customers, 14,760 branches - more than any other international bank - and 193,000 employees at the close of 2011. It is the largest financial group in Spain and Latin America. Furthermore, it has significant positions in the United Kingdom, Portugal, Germany, Poland and the U.S. northeast. Santander Consumer Finance operates in the Group's core markets as well as in the Nordic region. In 2011, Grupo Santander registered EUR 7,021 million in recurring net profit.

Contact Information

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