Shawbrook, ModaMortgages, and Loughborough BS also announce product changes
Santander is set to raise fixed mortgage rates across its new business and product transfer ranges starting Tuesday, May 27.
The lender announced increases of 0.10% on all standard two- and five-year fixed rates for home movers, first-time buyers, remortgages and large loans. Buy-to-let two- and five-year fixed rates for purchase and remortgage products will also see a 0.10% rise.
Most new-build products for home movers and FTBs will increase by up to 0.10%, although a few selected fixed rates will be reduced by as much as 0.04%. There are no changes to tracker rates.
In the product transfer category, all residential and BTL two-, three-, five- and seven-year fixed rates will go up by 10 basis points (bps).
Santander’s latest rate changes follow recent moves by Nationwide Building Society, which earlier increased selected fixed rates by up to 0.25%, signalling a trend of upward rate adjustments among big lenders.
While Santander and Nationwide are increasing rates, other lenders are making moves to improve affordability.
Shawbrook Retail Mortgages has cut rates across both The Mortgage Lender (TML) and Bluestone’s residential offerings, along with TML’s buy-to-let products.
TML’s residential fixed rates for purchase and remortgage applications now start from 5.49%, with reductions of up to 35bps. Its five-year BTL fixed rates, including those with a 5% completion fee, start from 4.41%.
Bluestone Mortgages also announced rate reductions of up to 25bps on residential products, with rates beginning at 5.99%.
Specialist buy-to-let lender ModaMortgages has also repriced its BTL product suite, reducing selected standard products by up to 40bps. Two-year fixed rates now start from 3.19% and five-year rates from 4.79%.
The lender has also introduced new products for small houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs), starting at 3.29% and 4.89% respectively. All products come with free valuations and no application fees.
Meanwhile, Loughborough Building Society has increased its maximum LTV from 60% to 70% for interest-only mortgages extending beyond the age of 80. The move aims to offer older borrowers more flexible finance options for needs such as home improvements, debt consolidation or re-entering homeownership.
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