Santander launches Help to Buy Mortgage deals Go compare with our comparison table

Santander launches Help to Buy Mortgage deals

09 January 2014 / by Isabel Buxton

Santander has today launched a range of mortgages backed by the Government's Help to Buy scheme, increasing the options for borrowers who want a 95% home loan.

Help to Buy mortgages on offer from Santander are offered at 95% loan to value (LTV) and include 2 year and 5 year fixed rate mortgages as well as a 2 year variable rate tracker mortgage. These mortgages are offered to home buyer with deposits of just 5%. Interest rates on the deals start at 4.99%, and free valuations and £250 cashback are also on offer.

Help for first time buyers

The Government’s Help to Buy scheme, which was announced in 2013, is intended to help people with smaller deposits get onto the housing ladder.  Since the launch of the scheme in October 2013, Halifax, RBS and HSBC have launched deals, with the Post Office set to follow in the future, via its intermediary the Bank of Ireland.

Miguel Sard, head of Santander Mortgages, commented on the launch, saying: "The first phase of the government's Help to Buy scheme has already helped improve the flow of credit to good quality customers, and played an important role in helping both first-time buyers and home movers looking to buy new-build properties.

See the table below to compare our selection of Help To Buy mortgages >> 
 
Your home may be repossessed if you do not keep up repayments on your mortgage.
 
First Time Buyer - Mortgage Deal Selection

Provider

Type

Initial Rate

Initial Term

Overall Cost for Comparison

Max LTV*Product Fee 
Fixed

2.39%

Reverts to 4.70%

2

Years

4.50%

90%

YesMore Info >
£750 Cashback. Early redemption charges may apply. Overall Cost for Comparison 4.50% APRC. This is the cost of the mortgage over the full term.
Fixed

2.39%

Reverts to 4.70%

2

Years

4.50%

90%

YesMore Info >
£750 Cashback. Early redemption charges may apply. Overall Cost for Comparison 4.50% APRC. This is the cost of the mortgage over the full term.
Fixed

3.09%

Reverts to 4.70%

5

Years

4.20%

90%

YesMore Info >
£750 Cashback. Early redemption charges may apply. Overall Cost for Comparison 4.20% APRC. This is the cost of the mortgage over the full term.
Fixed

3.49%

Reverts to 4.70%

5

Years

4.30%

90%

NoMore Info >
£750 Cashback. Early redemption charges may apply. Overall Cost for Comparison 4.30% APRC. This is the cost of the mortgage over the full term.

Representative Example:


A repayment mortgage of £120,000 payable over 28 years and 1 month initially on a fixed rate for 2 years at 1.99% and then on the lender current variable rate of 3.69% (variable) for the remaining 26 years and 1 month would require 24 monthly payments of £465.20 and 312 monthly payments of £565.39 and one final payment of £565.19.


The total amount payable would be £189,357.67 made up of the loan amount plus interest (£68,161.67), booking fee (£999), completion fee (£30) and valuation fee (£197).


In this example the overall cost for comparison is 3.7% APRC representative.


YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.