Santander UK is significantly expanding its mortgage portfolio with the launch of more than 50 new products from Tuesday 6 May, including a major push into the new build sector.

The bank’s refreshed range features 43 products specifically tailored for new build properties, alongside the introduction of three-year fixed rates and broad-based interest rate cuts across existing lines.

The move comes as Santander responds to growing demand in the new build market, fuelled in part by the government’s plans to deliver 1.5 million new homes, including via the creation of new towns. In support of this, Santander will now offer two and five-year fixed rates as well as two-year trackers for new build purchasers, with loan-to-value options ranging from 60% to 95%.

CASHBACK

To further encourage uptake, Santander has added a £250 cashback incentive for selected new build products. First-time buyers can benefit from cashback on deals between 85% and 90% LTV, while home movers are eligible at 95% LTV. The cashback applies across both two and five-year fixed terms.

Three-year fixed rate mortgages, a relatively rare offering in the current market, have also been added to the bank’s line-up. These are available for both first-time buyers and home movers, again with options up to 95% LTV and cashback available on qualifying products.

Graham Sellar, head of Santander for intermediaries, said the bank’s expanded offering reflects the government’s housing ambitions and aims to support both brokers and borrowers.

“There’s a renewed focus on the new build market spurred on by the government’s ambition to create 1.5 million new homes, in part through new towns. We’re pleased to bolster our new build offering, alongside new three-year fixes and broad reaching rate reductions, to support our brokers and customers access more options to help them on their homeownership journey,” said Sellar.

The changes are underpinned by Santander’s own research, which found that nearly three quarters of would-be first-time buyers and 57% of next-time buyers would consider purchasing a new build in one of the proposed new towns. Within the intermediary community, 83% of brokers believe that the new towns initiative could significantly reshape the homeownership landscape over the next 12 months.

Sample rates include a 60% LTV two-year fixed for home movers at 3.89% with a £999 fee, and a 95% LTV five-year fixed for first-time buyers at 4.99% with no fee and £250 cashback. Two-year trackers range up to 5.59% for first-time buyers at 90% LTV with no fee. The new three-year fixed range, aimed at both home movers and first-time buyers, includes a 95% LTV deal at 5.23% with no fee and cashback.

The bank has also implemented rate reductions across its wider range, covering home mover, first-time buyer, remortgage, buy-to-let and large loan products.