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What is the Santander 2% deposit mortgage?

Santander UK has announced the launch of a new mortgage product aimed at helping first-time buyers overcome one of the biggest barriers to home ownership, saving for a deposit.

The new My First Mortgage allows eligible buyers to purchase a home with a deposit of just 2%, offering a potential route onto the property ladder for those who may have previously struggled to save a larger upfront amount.

What is the Santander 2% deposit mortgage?

Santander’s My First Mortgage is a five-year fixed rate mortgage available exclusively to first-time buyers. The product allows borrowing of up to 98% loan-to-value, significantly reducing the deposit required when compared with traditional mortgage options.

Key features include:

• Five-year fixed interest rate
• Borrowing up to 98% of the property value
• Minimum deposit from £10,000
• £250 cashback on completion

The mortgage is available on existing residential houses only. It is not available for flats, new-build properties, or homes in Northern Ireland, and standard lender criteria apply.

Why this matters for first time buyers

Saving for a deposit remains one of the most challenging aspects of buying a first home, particularly in the current economic climate where rent and living costs remain high.

By lowering the deposit requirement to 2%, Santander is aiming to support buyers who can comfortably afford monthly repayments but have struggled to accumulate a larger lump sum. For many, this could reduce the time spent saving and allow them to buy sooner.

However, a lower deposit also means borrowing more, which brings additional considerations. This type of mortgage may suit buyers with stable income and strong affordability who are confident in their ability to manage repayments over the fixed term.

Getting the right advice

Low-deposit mortgages are more complex than standard products and should be assessed alongside the wider market. A mortgage broker can help you understand whether this type of deal is right for you, compare it against alternatives, and ensure the mortgage fits your long-term plans, not just your short-term goals.

At Richard Kendall Estate Agent we work closely with independent, fully qualified mortgage specialists who work with first time buyers every day, helping them navigate lender criteria, affordability checks, and product options. They will review your circumstances, explain the pros and cons clearly, and help you decide whether a 2% deposit mortgage is the right step or whether another option may suit you better.

If you are considering buying your first home and would like tailored advice on your mortgage options, then contact any office of Richard Kendall Estate Agent or email This email address is being protected from spambots. You need JavaScript enabled to view it. for a clear, straightforward conversation.

As a mortgage is secured against your home, it may be repossessed if you do not keep up the mortgage repayments. This site is intended for UK residents only and the laws of England are applicable.