For the first time since the start of the credit crunch, Santander is allowing mortgages for first time buyers purchasing new-build properties and increasing their maximum loan sizes.
Formerly the Abbey Bank, Santander is making a move to increase activity in the housing market through first time buyers.
The bank will raise its LTV (Loan to Value) from 70 percent to 80 percent for those buying brand new apartments and for those buying houses the LTV is rising from 80 percent to 90 percent; a move that will be welcomed by first time buyers across the UK.
For those who are not first time buyers, the LTV will remain at 70 percent and 80 percent respectively.
First time buyers are not the only party to be celebrating as housebuilders have been struggling to sell the typical first time buyer one and two bed properties thanks to the larger deposits mortgage lenders have needed.
Experts have commented in the media that this is a sign of increased competition coming from mortgage lenders and their confidence in new builds is returning.
The typical deals on offer from Santander at the moment include 4.99 percent interest rate up to 90 percent LTV on a two year tracker deal (£995 fee) or a 5.99 percent interest rate on a three year fixed mortgage deal (£495 fee).
Mortgage advisors have stated that the deal will most certainly benefit the market and first time buyers as whole, but there are some deals out there with even more generous LTVs – depending upon your circumstances.