Santander UK has introduced a new 98% loan-to-value (LTV) product available to first-time buyers.

The lender said the new offering, which has a rate of 5.19%, marks its latest step towards helping more prospective buyers onto the property ladder.

Data from Santander has shown that more than half (52%) of UK adults said they found saving money for a deposit to be the biggest barrier to buying a property.

The lender’s new product requires a minimum £10,000 deposit, with maximum lending up to £500,000 repayable over a term of between five and 40 years. Lending above 95% and up to 98% is available on existing houses only, with data from the lender showing that two thirds of first-time buyers purchased a house in 2025.

“We know that saving for a deposit remains one of the biggest hurdles to homeownership,” head of homes for Santander UK, David Morris, said.

“Last year, the average first-time buyer with Santander put down a deposit of more than £85,000, a figure that can feel unattainable for today’s aspiring homeowners, whether that’s a result of more modest income, limited family financial support, rising rental costs, and in some cases childcare expenses.

“We want to help more people benefit from the stability and sense of pride that owning a home brings, while maintaining our position as a responsible lender.”

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