Lender reduces fixed and tracker rates for first-time buyers, home movers and remortgage customers
Santander has cut rates across its first-time buyer, home mover and remortgage product ranges by up to 0.27%.
The reductions, effective from today, cover both fixed and tracker products and are available to customers applying directly or through a broker, in line with the lender's no dual pricing policy.
Among the new remortgage products, Santander is offering a 60% LTV two-year fixed rate at 4.62% with a £999 fee, a 75% LTV two-year fixed rate at 4.74% with a £999 fee, and a 90% LTV two-year fixed rate at 5.15% with a £999 fee.
For first-time buyers, two-year fixed rates at 85%–95% LTV fall by up to 0.15% (from 4.81%, £999 fee, £250 cashback); three-year fixes at the same LTV band by up to 0.23% (from 4.90%); and five-year fixes at 90%–95% LTV by up to 0.14% (from 4.89%). The 90% LTV two-year tracker drops 0.10% to 4.95% with no fee.
In the lender's home mover product range, two-year fixed rates at 85%–95% LTV reduce by up to 0.24% (from 4.84%, £999 fee, £250 cashback); three-year fixes by up to 0.23% (from 4.63%); and five-year fixes by up to 0.21% (from 4.52%, £1,999 fee). Two-year tracker rates fall by up to 0.19%, starting from 4.22% with a £999 fee.
Across the remortgage range, two-year fixed rates fall by up to 0.25% (from 4.57%, £1,999 fee); three-year fixes by up to 0.17% (from 4.74%, £999 fee); five-year fixes by up to 0.14% (from 4.61%, £1,999 fee); and 10-year fixes by up to 0.22% (from 5.02%, £999 fee). Two-year tracker rates reduce by up to 0.27%, starting from 4.30% with a £999 fee.
The move comes roughly a week after Santander last reduced many of its rates.
"Santander's latest price improvements are good news especially as the lender reduced many of its mortgage rates by 0.20% just over a week ago," Aaron Strutt (pictured right), product director at mortgage broker Trinity Financial. "Even though Santander's rates are reasonably priced, Nationwide's lowest two-year fixes start from 4.35% and its five-year fixes from 4.44%.
"If Santander wants to get more business, it probably realizes its rates need to come down a bit because of the increasing levels of competition between the major lenders. Halifax and Barclays still have sub-4% trackers. Even with the generally poor economic news and global instability, there is still a fairly strong demand for property and mortgages."
Strutt noted that mortgage rates had fallen despite widespread expectations of increases in recent weeks.
"Mortgages have got cheaper and they look better value for money, although NatWest has pushed up some of its rates," he said. "More of our clients are taking trackers because they expect the base rate will have to come back down over the near term, but fixes are getting closer to the point where it may well not be worth taking the gamble if you need a smaller mortgage and you do not need the flexibility of a variable rate deal that often does not have any early repayment charges."
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