Housing Minister Grant Shapps has welcomed Santander's decision to start offering mortgages under the NewBuy Guarantee scheme.

Just two months after its launch, Santander has become the fifth lender to become part of the scheme that will help prospective home buyers buy new build properties.

The NewBuy Guarantee scheme enables those looking to get on or move up the property ladder the opportunity to do so with just a fraction of the deposit currently required.

Santander will initially be working closely with four different housebuilders to offer 95 per cent mortgages on their new build properties.

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The products available will include:

•3 year fixed at 5.49 per cent with a £99 fee

•5 year fixed at 5.49 per cent with a £99 fee

•7 year fixed at 5.99 per cent with a £99 fee.

Mr Shapps said: "It's great news that Santander will start offering its customers deals on NewBuy Guarantee properties. As one of the UK's biggest mortgage providers, their participation demonstrates the growing enthusiasm by lenders to get involved in this scheme, and will boost the range of options customers can choose from when buying their newly-built home.

"The NewBuy Guarantee is offering a ray of hope for thousands of people who thought their dream of home ownership might never happen. Thanks to the agreements the Government is striking with lenders and builders across the industry, those aspiring to get on the property ladder are now able to do so with a fraction of the deposit they needed before."

(CD/GK)