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February 3, 2026
KEY INFORMATION
Here’s the key information about Santander’s new My First Mortgage:
A new mortgage has been launched by Santander allowing first time buyers to buy a home with just a 2% deposit – as long as that deposit is at least £10,000.
My First Mortgage is available as a 5 year fixed rate deal at 5.19%, with zero fee and £250 cashback.
David Hollingworth, associate director at L&C Mortgages, said: “This is an important addition from a major lender, adding to the growing ranks of mortgages designed to ease the struggles of first time buyers. There’s an increasingly healthy range of mortgages for those with little or no deposit.
“These products do carry eligibility requirements so won’t fit everyone’s requirements and a bigger deposit will still offer a wider choice with lower rates. However, the new Santander deal should help more to access homeownership sooner than they may have thought possible.”
To be eligible for the My First Mortgage, there’s criteria you’ll need to meet including:
The maximum loan to income ratio available on this mortgage is 4.45x.
This means, for example, if you earn £50,000 you won’t be able to borrow more than £222,500.
Paula Higgins, CEO of the HomeOwners Alliance, says:
“We welcome Santander’s My First Mortgage. With the government having deserted first time buyers, it is encouraging to see lenders stepping up and innovating to help the next generation buy a home.
A 98% mortgage from a major lender could make a real difference for some buyers, and a 5 year fixed rate can provide valuable payment certainty while they build up equity. But borrowing at 98% is a big commitment. Buyers should go in with their eyes open about affordability, the risk of being in negative equity if prices fall, and should always compare options and get advice from a broker.“
“As with many low deposit products, eligibility criteria will limit how widely this product is actually adopted. It is not available in Northern Ireland, excludes self employed buyers, has a maximum loan of £500,000, requires both applicants on a joint mortgage to be first time buyers, and cannot be used to buy flats or new builds.
“Taken together, these restrictions raise real questions about how many first time buyers can realistically benefit, particularly in higher priced parts of the South East where £500,000 may not go far. Flats are the main route into homeownership in urban areas, especially in London, so the exclusion of flats from first time buyer mortgage products is a worrying signal and risks putting ownership further out of reach for many.”
Before taking out any mortgage it’s important to shop around to find the best deal for you and get expert financial advice. If you have a 5% deposit, you’ll likely have a much wider choice of deals. However, even if you have a smaller deposit, there are other mortgage alternatives that require a low, or even no deposit, including:
Get fee free mortgage advice from our partners at L&C. Use the online mortgage finder or speak to an advisor today.
It is possible to buy a house with a £10,000 deposit in the UK, for example the My First Mortgage is designed to help first time buyers buy a home with a £10,000 deposit. However, you’ll need to meet eligibility criteria. Whenever you’re looking at mortgages it’s a good idea to get advice from a mortgage broker who can find the best deal for you.
The average deposit first time buyers paid in 2024 was £61,090 with deposits averaging 20% of the purchase price, according to Halifax.
HomeOwners Alliance Ltd is registered in England, company number 07861605. Information provided on HomeOwners Alliance is not intended as a recommendation or financial advice.
Mortgage service provided by London & Country Mortgages (L&C), Unit 26 (2.06), Newark Works, 2 Foundry Lane, Bath BA2 3GZ, authorised and regulated by the Financial Conduct Authority (FRN: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
HomeOwners Alliance Ltd is an Introducer Appointed Representative (IAR) of LifeSearch Limited, an Appointed Representative of LifeSearch Partners Ltd, authorised and regulated by the Financial Conduct Authority. (FRN: 656479).
Independent Financial Adviser service is provided by Unbiased, who match you to a fully regulated, independent financial adviser, with no charge to you for the referral.
Bridging Loan and specialist lending service provided by Chartwell Funding Limited, registered office 5 Badminton Court, Station Road, Yate, Bristol, BS37 5HZ, authorised and regulated by the Financial Conduct Authority (FRN: 458223). Your property may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.
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