Bank also cuts rates on numerous residential and BTL products
Santander UK will be the first high street lender to introduce mortgage rates below 4% this year.
The bank will launch a range of two- and five-year fixed rate residential mortgage products at 3.99% for borrowers with a 60% loan-to-value (LTV) ratio on Thursday, February 13. The offer applies to both home purchases and remortgages.
The lender is also cutting rates by up to 0.40 percentage points across more than 80 other mortgage products, spanning residential purchases, remortgages, new-build purchases, and buy-to-let loans.
Santander – one of the largest mortgage lenders in the UK – is also expanding its BTL options by introducing a 65% LTV range for both purchase and remortgage customers, providing more flexibility between its existing 60% and 75% LTV tiers.
Among the newly introduced products, Santander’s 60% LTV residential purchase mortgage will have a two- and five-year fixed rate of 3.99% with a £1,999 fee. The residential remortgage option at the same LTV and term length will also have a 3.99% rate but with a £1,749 fee.
For buy-to-let purchases at 65% LTV, the two-year fixed rate will be 4.35% with a £1,749 fee or 4.89% with no fee, while the five-year fixed rate will be 4.32% with a £1,749 fee or 4.59% with no fee. The same rates will apply to BTL remortgages, with the five-year fixed rate slightly lower at 4.25% with a £1,749 fee or 4.52% with no fee.
Santander’s latest rate reductions follow a series of rate cuts by UK lenders in response to easing market conditions. The bank was also among the first to reduce mortgage rates after last week’s Bank of England base rate reduction.
“We’re delighted to launch a range of new products, along with rate cuts on our existing range, that will make a difference to customers across every stage of the homebuying journey,” said David Morris, head of homes at Santander UK. “From prospective buyers looking to get on the ladder for the first time, to landlords in the buy-to-let market, we’re proud to offer competitive products that help our customers reduce the overall cost of their mortgage.”
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