Santander has launched a mortgage that allows first-time buyers to borrow an unprecedented 98% of the property's value, but with strict rules in place. The bank claims this is a bold move that could help more people achieve their dream of homeownership.
The deal, available only to first-time buyers, requires a minimum deposit of £10,000 and has a maximum loan amount of £500,000. While some mortgage brokers see this as a significant development, experts caution that the strict eligibility criteria will exclude many potential borrowers.
Critics argue that the restrictions, including the exclusion of self-employed individuals, flats, new-build homes, and properties in Northern Ireland, will limit the product's adoption. Moreover, those seeking to borrow the maximum £500,000 will need to earn significantly more than £112,000 a year, making it inaccessible for many.
Industry insiders note that this move may encourage other major lenders to offer similar products, but the harsh conditions set by Santander may also lead to a wider availability of mortgages with lower deposit requirements. Currently, some lenders are offering mortgage deals with borrowing limits up to six times the borrower's income.
Despite the bank's efforts to address the issue of saving for a deposit, experts point out that the £500,000 maximum loan amount will prove problematic in regions like London, where average house prices exceed this threshold. This could further exacerbate the affordability crisis faced by first-time buyers.
The impact of Santander's 98% mortgage on the UK housing market remains to be seen, but one thing is certain – it will not make homeownership more accessible for everyone.
The deal, available only to first-time buyers, requires a minimum deposit of £10,000 and has a maximum loan amount of £500,000. While some mortgage brokers see this as a significant development, experts caution that the strict eligibility criteria will exclude many potential borrowers.
Critics argue that the restrictions, including the exclusion of self-employed individuals, flats, new-build homes, and properties in Northern Ireland, will limit the product's adoption. Moreover, those seeking to borrow the maximum £500,000 will need to earn significantly more than £112,000 a year, making it inaccessible for many.
Industry insiders note that this move may encourage other major lenders to offer similar products, but the harsh conditions set by Santander may also lead to a wider availability of mortgages with lower deposit requirements. Currently, some lenders are offering mortgage deals with borrowing limits up to six times the borrower's income.
Despite the bank's efforts to address the issue of saving for a deposit, experts point out that the £500,000 maximum loan amount will prove problematic in regions like London, where average house prices exceed this threshold. This could further exacerbate the affordability crisis faced by first-time buyers.
The impact of Santander's 98% mortgage on the UK housing market remains to be seen, but one thing is certain – it will not make homeownership more accessible for everyone.
. It's like they're setting the bar so low that only those who are already in the game can play. And what's with the £500k max? That's just a way to keep people from buying properties that'll be worth more in 10 years, you know? The bank's trying to create a market for them, but it's like they're speaking a different language 
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. £112k? That's just out of reach for so many people. It's like they want to make sure only the wealthy get in on this "affordable" mortgage deal 
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. I'd be surprised if Santander is doing this out of altruism 
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... this news just highlights how tough it is for ppl to get into the housin market in the 1st place 
. and the fact that self-employed individuals are excluded is just another barrier... it's like, how r we supposed to move forward if everyone's stuck in this cycle 
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. maybe instead of creatin' a product that's only for 1% of the population, they should be lookin' at ways to make it more affordable for everyone 
. but idk, i'm not a expert... just my 2 cents 
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. I guess we'll just have to wait and see how this whole thing plays out, but I'm not holding my breath that it'll lead to more affordable mortgages for the average person 
! The sunsets were incredible and I swear I saw a dolphin or two swimming alongside the boat 
. Anyway, have you guys ever noticed how people always talk about saving up for a deposit like it's this huge accomplishment? Like, what if you just wanted to travel instead? 
Don't get me wrong, owning a home is great and all, but is it really worth stressing about?
. It's amazing how much joy they bring to people's lives. Anyway, back to mortgages... I don't know if that 98% deal is going to work or not but maybe we should focus on making homes more affordable for families instead of just first-time buyers?
... like, £10k deposit and max loan of £500k? that's not exactly what i'd call 'affordable' 
. and dont even get me started on the income requirements - £112k+ per year? thats just not realistic for most people 
... but maybe they should've thought that one through before making it so restrictive 
. and honestly, i'm kinda worried about other lenders following suit with super low deposit requirements - that just sounds like a recipe for disaster 
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. What about all the self-employed folks or those who can't afford a flat? They're basically excluded from this deal 
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they're saying this is gonna encourage other lenders to offer similar products but what's the catch? are we just gonna see more lenders doing 90% loans with stricter rules too? 
and saw some crazy roadside attractions . Like, have you ever heard of the world's largest ball of twine? It's this massive sphere of twisted wire that just kinda sits there in the middle of nowhere. I mean, what's the point of it all? Is someone out there like "Hey, let's collect enough wire and make a giant ball!" 
And then you start thinking about how many people must have contributed to that monstrosity... Anyway, it got me thinking about how weird some things are in life. Like this mortgage deal from Santander - 98% of the property's value? That's just wild. I wonder if anyone will actually take advantage of it 
but seriously tho, who gets £500k with only £10k down? thats like trying to buy a mansion on a shoestring budget! and what about all the first-time buyers in london who cant even afford the deposit for that price range? it just proves theyre not being realistic about affordability