Bank joins a wave of lenders cutting fixed rates as competition for home buyers and remortgagers intensifies
Santander has reduced selected fixed rates across its residential and buy-to-let new business and product transfer ranges, effective tomorrow, 4 June.
On the residential side, cuts apply to most one-, two-, three-, five-, and seven-year fixed rates, with reductions of up to 0.10% on standard product transfer products and up to 0.17% on new business rates. For BTL, all 60% and 65% and 75% LTV two- and five-year fixed rates fall by up to 0.09%.
Among the headline new business changes, the 60% LTV two-year fixed rate for home movers with a £1,999 fee drops by 0.17% to 4.43%, while the equivalent five-year fix with a £1,999 fee falls by 0.08% to 4.44%. First-time buyer rates also see reductions, with the 85% LTV two-year fix (£999 fee) cut by 0.15% to 4.66% and the 90% LTV five-year fix (£999 fee) down by 0.09% to 4.80%.
On the remortgage side, two-year fixed rates at 60% LTV fall by 0.06% to 4.51% (£1,999 fee), while the 75% LTV equivalent drops by 0.10% to 4.57%. BTL remortgage two-year fixed rates at 60% LTV decrease by 0.09% to 4.56% with a £1,749 fee. All residential remortgage products include Santander's remortgage solution; residential purchase products include £250 cashback.
New build products mirror the residential new business changes across both home mover and first-time buyer categories, with equivalent rate reductions applied to New Build Exclusive products at the same LTV tiers.
Tracker rates and the BTL purchase range are unchanged.
"More of the big lenders have been lowering mortgage rates to attract borrowers and bring a bit more life into the property market over the last few days," said Aaron Strutt, product director at Trinity Financial. "Barclays, Coventry Building Society, Halifax, HSBC, NatWest and now Santander have all improved their pricing as competition ramps up to attract home buyers and the £154 billion worth of remortgaging home owners coming up for renewal between July and December this year. Two-year fixed rate mortgages start from 4.35% and there are two banks offering sub-4% tracker rates. There are also five-year fixes starting from 4.44%.
"While some of the price reductions have not been huge, at least rates are heading in the right direction and the gap between two- and five-year fixes is getting smaller. These latest rate changes show how keen the lenders are to write more mortgage business, especially as many borrowers have been holding off because of the higher monthly repayments. We are back at the stage where there are more sub-4.5% deals to choose from which is good news for borrowers. Santander's lowest two-year fix seems to be coming down to 4.43% which is not far off market leading."
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