Craig Leigh, Mortgage Adviser at The Mortgage Broker, has shared expert insights on how Santander’s 2% deposit mortgage impacts buyers and brokers.
Craig Leigh, Mortgage Adviser at The Mortgage Broker, commented:
“A move like this from Santander shows the market is shifting in a constructive direction, and a 98% loan-to-value deal can help buyers who are mortgage-ready from an affordability point of view, but are being blocked by the deposit hurdle. Especially with rents and living costs still very high.
It is also good news from a broker perspective because it adds another mainstream household name to the panel and improves the range of solutions we can explore for clients across our specialist lender panel.
The key, however, is context, as borrowers should understand that ultra-low deposit deals can come with tighter criteria and pricing that reflects the higher risk. There are also alternative routes in the wider market, including products that work from smaller cash deposits or even deposit-free structures in certain scenarios, so it is imperative to get advice and compare all the options.”
