Major lender Santander has announced that with immediate effect, it is cutting interest rates on its range of fixed-rate NewBuy mortgages. This is excellent news for homeowners and first-time buyers with only 5% to put down on a new home who want to use the government-backed NewBuy scheme to secure a new-build property in England up to the value of £500,000.
The new rates are available through Abbey for Intermediaries and can be used to purchase an array of apartments and houses for sale at developments from Barratt Homes, Berkeley Homes, Bovis Homes and Persimmon Homes. Each has a maximum loan-to-value of 95% and comes with a fee of only £99, offers free valuation and the bonus of £250 cash back at a time when every penny counts for homebuyers.
The new rates, available from 3rd August 2012, are:
"These NewBuy product rate reductions demonstrate Santander's continued commitment to helping customers get on the housing ladder, says Phil Cliff, Director of Santander Mortgages. "Our three-year fixed is now a market leading 4.99% while our five- and seven-year fixed remain highly competitive at 5.29%. This reduction in rates, coupled with low upfront fees of £99, makes our NewBuy mortgage range the best-value products available exclusively via the intermediary market."