Santander Mortgages Reviewed

If you’re a first-time buyer, a home mover, or somebody thinking about remortgaging to Santander, you may be eligible for one of the following.

Santander offer:

Fixed-rate mortgages

Santander fixed-rate mortgages are a good option if you can lock yourself into a deal with a low-interest rate and know exactly what you will be paying.

At Santander, you can get a fixed-rate deal for 2, 3, or 5 years, during which time the interest rate won’t change. Once this initial period is over, you will move on to the lender’s Follow on Rate which moves in line with the Bank of England’s base rate.

Tracker rate mortgages

Santander Tracker Mortgage rates are good value when the Bank of England base rate is low. But when the base rate increases, so too will the cost of your loan.

You have the option of a 2-year Tracker deal, after which time you will move onto the lender’s Follow on Rate, or a Lifetime Tracker, where the interest rate tracks the Bank of England’s base rate for the full duration of your loan term.

Interest Only Mortgages at Santander

Santander interest only mortgages work by paying monthly for the cost of the interest without reducing the capital sum. Ideal for buy-to-let investments. These mortgages necessitate a clear strategy for paying off the loan at term’s end. For advice on whether this option suits you, speak with our fee-free advisors.

Cashback mortgages

If you’re a first-time buyer, a customer with a smaller deposit, or somebody looking to remortgage, you may be able to benefit from one of Santander’s cashback products.

At the time of writing, £250 will be given as cashback when an eligible customer takes out a Santander mortgage.

Santander offers mortgages designed specifically to support first-time buyers as they make the leap into homeownership. Recognising the difficulty in saving a substantial deposit, Santander provides solutions with lower deposits requirements and competitive interest rates to ease this transition into homeownership. Their approach simplifies the mortgage process while providing supportive guidance when taking their first steps onto the property ladder.

Santander’s Shared Ownership Scheme

Building upon their first-time buyer-friendly mortgages, Santander’s Shared Ownership Mortgages provides an ideal option for those who find full homeownership out of reach. The scheme allows the purchase of between 25%-75% of a property while still paying rent on any remaining portion; particularly beneficial for first-time buyers due to staircasing which allows an increasing share over time leading up to full ownership – ultimately aligning more closely with financial realities of first time purchasers.

Whether you’re an aspiring landlord or an experienced investor, you may be able to get a buy-to-let mortgage with Santander.

You have a choice of 2 or 5-year fixed rate loans or a 2-year tracker rate mortgage. Each of these is capped with a 75% LTV.

To be eligible for a buy-to-let mortgage, you need to meet Santander’s lending criteria, as follows:

• The house/flat you’re buying must be at least £75,000 in value

• You must be aged between 21 and 70

• Your expected rental income must be at least 145% of your monthly payment

• You must be a UK resident

• If you are making a joint application, one of the applicants must already own a UK residential mortgage

The loan-to-value (LTV) is the ratio of what you borrow from the mortgage lender against how much you put down as a deposit.

Do Santander offer 95% LTV mortgages?

The maximum LTV (loan-to-value) that Santander offer is 95% but if you’re able to put down a higher deposit for a 90% LTV or lower, you will have access to a wider range of deals.

90% LTV mortgages are available to most customers, including self-employed homebuyers who don’t currently have a mortgage with Santander.

The maximum loan size for a 90% LTV mortgage is £570,000.

In the case of a 90% LTV mortgage, Santander will lend you 90% of your chosen property’s value and you pay the remaining 10% with your deposit.

90% LTV example: For a house costing £300,000, Santander will lend you a mortgage worth £270,000 and you will need to cover the remaining £30,000 with your deposit.

Santander also offers 95% LTV mortgages, which could be more affordable if you’re a first-time buyer.

95% LTV example: For a house costing £300,000, Santander will lend you a mortgage worth £285,000 and you will need to cover the remaining £15,000 with your deposit.

If you are a first-time buyer and you’re struggling to raise the money for a deposit, Santander accepts applications from people using a gifted deposit or who are buying a house through such schemes as Shared Ownership.

If you are able to make a larger deposit, such as 20% for an 80% LTV mortgage, more deals will open up to you and your borrowing costs will be lower.

Our expert remortgage advisors have written a very helpful guide on the process of a Santander Remortgage.

The lower the mortgage interest rates, the less you will have to pay on your mortgage balance.

The Santander Mortgage Rates market has recently seen a reduction in interest rates across their product range. But is Santander offering the best deals at the lowest rates? Or will another lender give you a better offer? To find out, you can either…

• Shop around different lenders (this could take up a lot of your time)

• Use a comparison website (some may be biased toward certain lenders)

• Consult an experienced mortgage broker for advice (your best option)

YesCanDo Money has access to nearly every lender on the market so can search for the best deals on your behalf.

Take advantage of our advice and support by getting in touch with us today using the contact details on our website.

A Santander Product Transfer allows existing mortgage customers to switch to another loan within Santander’s range more easily and quickly, and benefits those on standard variable rates or those who have expired fixed or discounted rate contracts within six months of expiry. The process involves checking eligibility, submitting a transfer request, and accepting their new deal – with no further income or affordability assessments, wide variety of products offered at competitive rates regardless of direct application versus broker application making the transfer faster, simpler and potentially more beneficial to customers than with competing lenders.

As mortgage brokers, we understand self-employed individuals have unique financial situations when seeking home loans. We provide tailored mortgage solutions using Santander’s offerings, which are designed for self-employed borrowers. With competitive rates and expert guidance at no extra cost, we simplify the path to homeownership. To apply, you’ll need standard ID and residency verification, plus specific income docs for the self-employed. Santander requires a minimum 2 years of self-employment and recently upped maximum LTVs to 90% for these borrowers. Our advisors guide you through the Santander mortgage application process, ensuring a smooth experience for self-employed clients seeking our home financing services.

Learn more about Santander Self-Employed Mortgage here >