Santander seems to have taken heed of the well worn adage, ‘There’s a first time for everything’, by offering a fixed rate of 5.45% on mortgages for first time buyers looking to get a hold on that all too slippery property ladder.
You’ll be able to borrow 90% of a property’s value, and the rate will last until 2 April 2013, when it will switch to Santander’s standard variable rate of 4.24%.
Money website This is Money reports: ‘The rate may seem high but for those with smaller deposits of 10% this is about as good as it gets.’
It goes on to highlight the difference between mortgage rates with a 10 and 15 percent deposit. The more you’ve saved to put down on a house, the easy it will end up being. Santander gives a rate of 4.99% for a mortgage with 15% deposit, which, if you shop around, you’ll find can be bettered.