To support the new build market, Santander UK has announced that, from Tuesday 6 May, all new build mortgage offers will be valid for a standard nine months – three months longer than previously.
The extension is designed to help brokers and their customers alleviate concerns should a building completion that take longer than expected, providing greater certainty when buying a new build home. Research by Santander1 found that a third (33%) of brokers had experienced issues with a delay in building completion and mortgage offers expiring as a result. In cases where there is concern that the property will not be completed within nine-months, a three-month extension can be applied for.
Graham Sellar, Head of Santander for Intermediaries, said: “New build properties account for one in ten of all property sales in the UK, and with the Government’s ambitions on new towns, we can expect that proportion to grow. We know from talking to our brokers that while there is a lot of opportunity there are also particular challenges when supporting a customer with a new build purchase. We hope our extended validity period gives brokers and customers confidence that Santander is ready to support them with unexpected hurdles along their homeownership journey.”
New towns data
Research conducted by Santander found that:
85% of mortgage brokers see demand for homes in new towns across the UK, with over four fifths believing it will transform the homeownership market.
Almost all mortgage brokers (99%) report to have experienced a range of issues when faced with supporting a new build purchase.
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Research was conducted 25 October-5 November 2024 by Opinium, with a focus group of 150 mortgage brokers.
About Santander
Santander UK is a financial services provider in the UK that offers a wide range of personal and commercial financial products and services. At 31 December 2024, the bank had around 18,000 employees and serves around 14 million active customers, including 7 million digital customers. Santander UK is subject to the full supervision of the FCA and the PRA in the UK. Santander UK plc customers’ eligible deposits are protected by the FSCS in the UK.
Banco Santander (SAN SM, STD US, BNC.LN) is a leading commercial bank, founded in 1857 and headquartered in Spain and one of the largest banks in the world by market capitalization. The group’s activities are consolidated into five global businesses: Retail & Commercial Banking, Digital Consumer Bank, Corporate & Investment Banking (CIB), Wealth Management & Insurance and Payments (PagoNxt and Cards). This operating model allows the bank to better leverage its unique combination of global scale and local leadership. Banco Santander aims to be the best open financial services platform providing services to individuals, SMEs, corporates, financial institutions and governments. The bank’s purpose is to help people and businesses prosper in a simple, personal and fair way.