Spotlight On: Santander first-time mortgages

The deal

Santander is offering new three and five-year, fixed-rate loans for first-time buyers with at least 10 per cent deposit.

Good points

Rates start from 4.89 per cent while fees are at just £99 instead of the usual £495 or £995 standard fee charged. There's also free valuation and £250 cashback on completion.

Bad points

The five-year fixed-rate for those with 10 per cent deposit is at 5.99 per cent. That could very quickly seem like an expensive deal and anyone picking it will be tied in for 60 months.

Conclusion

It's good to see lenders targeting first-time buyers, but deals need to be more attractive than this to help those struggling to get on the property ladder. Better deals could emerge in the coming months as lenders become more competitive.