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Santander offers 95% LTV loans outside Help to Buy

Santander has announced that it will lend at 95% loan-to-value outside of the Government’s Help to Buy mortgage guarantee scheme.

The scheme is due to finish at the end of 2016 and last week the Government suggested that lenders may exit before them and introduce their own 95% LTV products.

From 29 September 2015, Santander will lend at 95% LTV without the assistance of Help to Buy 2.


Santander said it wants 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.”

From 29 September, all new applications above 90% LTV will be treated as a standard Santander mortgage.

The lender said that no customers will be impacted as its 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. Our new 95% LTV products, alongside the Help to Buy: equity loan and Shared Ownership schemes, provide customers with choice when it comes to purchasing their first home.

“Santander will also be offering HTB ISA products later this year, and ISA customers will have access to all of our mortgage products.

“Our decision to lend without the mortgage guarantee scheme provides reassurance that a natural market will exist after HTB2, giving confidence to those currently saving for their deposit, and those new savers looking to benefit from the HTB ISA scheme from December.”


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