Santander UK has confirmed that the first mortgage offer has been issued under its new 98% loan-to-value product, aimed at first-time buyers with smaller deposits.
The lender launched its My First Mortgage range on 3 February, allowing eligible first-time buyers to borrow up to 98% loan to value with a minimum deposit of £10,000 and maximum borrowing of £500,000.
The product is available on existing houses only and can be accessed exclusively through brokers or Santander’s own advised service. Several offers have already been issued since launch, with further applications in progress.
The first completed offer came via John Cozzolino, mortgage and protection specialist at My Mortgage Maker Ltd, trading as Windsor Hill Mortgages in Bath.
Cozzolino’s clients, Mr and Mrs Cotterell, had previously explored low-deposit options but had not identified a product they wished to proceed with. They applied to Santander on 10 February for £475,000, supported by a £10,000 deposit.
An offer was issued for the full loan amount, representing 97.94% of the agreed £485,000 purchase price for a property in Somerset.
Cozzolino said: “Having worked in the industry for 16 years, it’s positive to see big lenders finding new ways to support more first-time buyers, responsibly.
“I knew these customers were the perfect applicants for the My First Mortgage product, but it’s easy to be sceptical about a headline grabbing figure of 98% LTV and a part of me did wonder if it was all smoke and mirrors.
“But Santander walked the walk, and I was really pleased that this case was agreed following a smooth and sensible application process, and that our clients can get on preparing to move into their new home.”
Graham Sellar, head of Santander for intermediaries, added: “It’s been very exciting to see the first customer offers landing under My First Mortgage, and working with our valued broker partners, like John, to bring the homeownership dream to life for more first-time buyers.
“We look forward to further innovating to support more first-time buyers in 2026, while maintaining our position as a responsible lender and working together with trusted advisers and intermediaries to ensure buyers are making decisions that are right for them.”
