The lender is also offering a 2-year fix at 4.29% and a 5-year fix at 4.89% for purchasing customers, all with no booking fee.
Miguel Sard, Santander’s managing director of mortgages said: “The government’s Help to Buy: mortgage guarantee scheme encouraged lenders to re-enter the 95% LTV space.
“There is now a healthy market for customers with smaller deposits and we hope our new, competitively priced 95% LTV products will help customers looking to purchase their dream home.
“As a prudent lender ensuring customers can afford to meet their financial commitments is key, so we encourage them to seek independent financial advice.”
Santander has also made rate changes, as its 70% LTV 5-year fix stands at 2.64% and its 75% LTV 5-year fix costs 2.74%, both with a £995 booking fee, while the lenders 75% LTV 2-year fix now stands at 1.74% with a £1,495 fee. All products are for purchase and remortgage.
Other products include an 80% LTV 5-year fix at 2.89% with a £995 booking fee for and a 90% LTV 2-year fix at 3.29% with no booking fee.
The maximum loan size on 90% LTV products has been raised from £500,000 to £570,000.
