Santander is set to launch a range of 95 per cent LTV mortgages without the assistance of the Government’s Help to Buy mortgage guarantee scheme.
Help to Buy 2 is set to finish in 2016, although Santander has confirmed it will continue to lend at this level beyond the life of the scheme.
Santander managing director of mortgages Miguel Sard says: “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 per cent 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 per cent LTV without the need for government support.”
Santander will stop taking Help to Buy 2 applications on 28 September. All applications submitted by this date will proceed as a Help to Buy loan.
Earlier this week, Nationwide announced it had earmarked £1bn for a new range of 95 per cent LTV loans. Similarly, these loans are outside of any Government scheme.