The Guardian - Santander offers 98% mortgage for first-time buyers – with strict rules

Aaron Strutt, at the broker Trinity Financial, told The Guardian that Santander’s move “may well tempt other big lenders back into offering more sub-5% deposit mortgages to new customers”.

However, those hoping to borrow the maximum £500,000 will need to earn more than £112,000 a year, as the most Santander will lend someone taking the 98% deal is 4.45 times their salary.

First-time buyers borrowing up to 95% from the bank may be able to obtain up to 5.5 times their salary, and a growing number of lenders, including Nationwide and NatWest, will now let some homebuyers borrow up to six times their income.

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The information contained within was correct at the time of publication but is subject to change.

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