Major bank unveils 2% deposit mortgage for first-time buyers.

Santander UK launched a 'my first mortgage' offering a five-year fixed rate of 5.19% with no product fee and up to 98% loan-to-value for eligible first-time buyers.

Santander UK has launched a "my first mortgage" aimed at first-time buyers. The product carries a five-year fixed rate of 5.19% and has no product fee. It is available at up to 98% loan-to-value and for maximum lending up to £500,000, with repayment terms between five and 40 years. Santander said the deal excludes self-employed applicants and is available to residents of Britain only, with Northern Ireland excluded. Key details: - Five-year fixed rate of 5.19% and no product fee. - Available up to 98% loan-to-value, maximum lending £500,000, repayable over five to 40 years. - Lending above 95% and up to 98% LTV is restricted to existing houses; new-build purchases can access up to 95% LTV. - The product is not open to self-employed applicants and excludes residents of Northern Ireland. - A minimum of £190,001 must be borrowed and a £250 cashback is paid on completion. - All lending remains subject to Santander's affordability checks, including a maximum loan-to-income multiple of 4.45 times salary. Summary: Santander described the product as a response to high deposit levels reported among its first-time customers, noting an average deposit of more than £85,000 last year. Industry commentators highlighted that building societies and other lenders have introduced alternative products and that the Financial Conduct Authority is set to review options and regulation for first-time buyers this year. Undetermined at this time.