Santander announces range of rate reductions across higher LTV first-time buyer products – including new sub-5% 98% LTV My First Mortgage

02 March 2026

Santander has announced that from Wednesday 4 March, it is reducing the interest rate on its recently launched My First Mortgage to 4.99% - a reduction of 0.20%, helping customers borrow up to 98% LTV for less.

My First Mortgage, which launched on 3 February, is available to first-time buyers looking to purchase an existing house, with a minimum £10,000 deposit and borrowing up to a maximum of £500,000. Alongside a newly reduced rate, My First Mortgage continues to come with £0 fee and £250 cashback, and customers can apply exclusively via a broker or through a Santander adviser.

The reduction comes as the bank announces further cuts across all of its 85%+ LTV first-time buyer products by up to 0.38%, including a return to sub-4% lending at 90% LTV with a two-year fixed at 3.99%, alongside reductions to many higher LTV home mover and new build specific products of up to 0.33%.

Last week, Santander shared details of the first customer to receive a My First Mortgage offer, which came via John Cozzolino, Mortgage and Protection Specialist at My Mortgage Maker Ltd, trading as Windsor Hill Mortgages, based in Bath.  

Mr Cozzolino’s customers – Mr and Mrs Cotterell – had previously expressed an interest in low deposit mortgage products but had not found one they wanted to pursue. They applied for £475,000 of lending from Santander on 10 February 2026, with a £10,000 deposit. They received an offer for the amount, which represents 97.94% of the £485,000 value of the house that they are looking to purchase in Somerset. 

David Morris, Director of Homes at Santander UK said:

“We launched My First Mortgage with the aim of helping more first-time buyers take their initial step onto the property ladder. I’m proud to say that in the weeks since we’ve launched, we have done just that with many first-time buyers receiving offers of lending under My First Mortgage. It’s fantastic to be able to go one step further and reduce the interest rate so soon after launch to that crucial sub-5% mark, that we know so many buyers are seeking when looking at higher LTV borrowing.

“Our latest cuts show that we’re also still here to support a range of buyer types, with reductions across our new build, home mover and remortgage products helping customers further manage the costs of owning their dream home.”

Reductions from Wednesday 4 March include:

First-time buyers:

All 85%, 90% and 95% LTV two-year fixed rates are reducing by up to 0.23%.
All 85%, 90% and 95% LTV three-year fixed rates are reducing by up to 0.38%.
All 85%, 90%, 95% and 98% LTV five-year fixed rates are reducing by up to 0.20%.

Home mover:

All 85%, 90% and 95% LTV two-year fixed rates are reducing by up to 0.18%.
All 85%, 90% and 95% LTV three-year fixed rates are reducing by up to 0.33%.

Remortgage:

All 85% and 90% LTV two-year fixed rates are reducing by up to 0.11%.
All 60% and 75% LTV three-year fixed rates are reducing by up to 0.08%.
All 85% and 90% LTV five-year fixed rates are reducing by up to 0.05%.