Santander 98% mortgage

My First Mortgage

In February 2026, Santander launched a specific product called ‘My First Mortgage’, which allows first-time buyers to purchase a home with just a 2% deposit (98% LTV). This is a significant move, as most major high-street lenders typically cap lending at 95% LTV.

Santander found that over half (52%) of UK adults said that saving for a deposit was the biggest hurdle to getting onto the property ladder. Even while they may be eligible for a mortgage, they don’t have enough upfront cash for a significant deposit. And so they created My First Mortgage.

98% mortgage

The 98% LTV mortgage is available to first-time buyers purchasing an existing property, with a minimum £10,000 deposit and a maximum loan size of £500,000 (maximum is 4.45x annual income, with a minimum loan of £190,001). It continues to carry no product fee and a £250 cashback, and is only accessible via a Santander mortgage adviser or participating mortgage broker.

Eligibility criteria

The new mortgage product is only available through a Santander mortgage adviser or participating mortgage broker, and includes the following requirements and restrictions:

• Maximum borrowing: £500,000

• Deposit required: minimum £10,000

• 5-year fixed rate

• Available for 95% - 98% loan to value

• Maximum term is 40 years

• If a joint application, both must be first-time buyers

Key restrictions

This product is specifically designed for first-time buyers purchasing existing houses. Please note the following key restrictions before applying:

• Property type: Not available for flats, new build homes, Shared Ownership properties

• Applicant status: Not available for self-employed applicants

• Location: Not available on properties in Northern Ireland

• Financial limits: Minimum deposit of £10,000 and maximum borrowing of £500,000

What to consider with a low deposit mortgage

Whether you’re thinking of getting a 98% or 95% LTV mortgage, it’s always best to go in prepared. With a lower deposit mortgage, you’re trading a lower upfront cost for potentially higher monthly expenses. These mortgages allow you to buy sooner, but carry higher interest rates and stricter eligibility checks. If the value of your home falls, you might end up owning more than it’s worth, making it difficult to sell or remortgage later. This is known as negative equity. 

Who is the 98% mortgage good for?

Santander designed this mortgage for first-time buyers who struggle to save for a house deposit. According to Santander’s research, the average first-time buyer deposit exceeded £85,000 in 2025, highlighting how challenging it has become for many to secure their first property.

By reducing the upfront deposit requirement, Santander hopes to get buyers’ moving quicker, particularly for those who are priced out of traditional 95% LTV products and are currently stuck renting.

Our mortgage experts can help you find out if you're eligible for a 98% LTV mortgage, and if this is suitable for you. 

What could a 98% mortgage look like?

Santander has set the My First Mortgage product to 4.45x annual income. They’ve also set the minimum loan to £190,001. Let’s take a look at what that could mean.

Table is for illustrative purposes only. Your actual loan amount will depend on your personal circumstances, credit history, and a full affordability check. Aligned with Santander's criteria, the maximum borrowing is typically capped at 4.45x your annual income. Speak to a mortgage broker for full eligibility requirements.

With specific requirements, our experts can help you explore whether a 2% deposit mortgage is possible for you.