Santander’s High Loan-To-Value Mortgages A Sign Of Confidence In Lending Market
The bank is creating a series of high loan-to-value (L.T.V.) mortgages aimed at servicing customers with good credit ratings.
Santander are looking to entice customers wanting competitive interest rates over a set time period, offering £250 in the form of cashback available to selected accounts. Santander’s managing director of mortgages, Miguel Sard Says the offers look to appeal to those wanting “to move up and lock in to a competitive fixed rate, including first time buyers and those seeking to remortgage.”
The bank realises that “some customers keen to take the second step on the property ladder can find it difficult” and hope the high L.T.V. mortgages can make taking the next step on the property ladder more feasible.
The fact that the bank is willing to accept the higher risk that comes with high L.T.V. loans is evidence of a returning sense of confidence among lenders. It is notable however that this is not a return to the over 100% L.T.V. mortgages available before the crisis in the credit market.
Santander will offer as much as a 90% L.T.V. mortgage fixed for five years at a 3.14% rate which will require the payment of a £995 product fee. Further offers include an 85% L.T.V. mortgage fixed for five years at a 2.79% rate with no product fee and an 80% L.T.V. mortgage fixed for two years at a 1.64% rate with a £995 product fee.
The £250 cashback will be available to selected accounts in the intermediary market and consist of a 90% L.T.V. mortgage fixed for two years at a 2.34% rate with a £995 product fee and a 75% L.T.V. mortgage fixed for two years at a 1.39% rate with a £995 product fee.
The entire range of mortgages will be available for both purchase and remortgaging purposes.
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