Pricing adjustments to impact first-time buyers, home movers, and BTL customers
High street lenders Santander and TSB have announced a range of mortgage rate adjustments set to take effect tomorrow, March 28, impacting both residential and buy-to-let customers.
Santander will implement reductions across most fixed rates in the home mover and first-time buyer ranges. However, some five-year fixed rates will see increases.
For first-time buyers, all 75% to 95% loan-to-value (LTV) two-year fixed rates will be reduced by up to 0.08%, while the 75% LTV three-year fixed rate with a £999 fee will drop by 0.05%. Selected five-year fixed rates for 60% to 90% LTV will increase by up to 0.09%. Home movers will see most 75% to 95% LTV two-year fixed rates decrease by up to 0.15%, while selected 90% to 95% LTV five-year fixed rates will fall by up to 0.07%.
As part of Santander’s latest rate changes, selected 60% LTV five-year fixed rates will increase by 0.06%. For remortgage rates, selected two-year fixed rates at 60% LTV and all five-year fixed rates at 60% to 90% LTV will increase by up to 0.08%.
For BTL customers, Santander is lowering selected two-year fixed rates for both purchases and remortgages, with reductions of up to 0.10% for 60% to 75% LTV purchase products and 0.05% for 60% LTV remortgage products.
However, some BTL fixed rates for product transfers will rise, while tracker rates will remain unchanged. In addition, the 95% LTV two-year fee-free tracker for home movers will be reduced by 0.08%.
Santander has reminded brokers that separate product ranges for first-time buyers and home movers have been in place since March 4, with brokers required to enter the home mover as applicant one when there is a mixed applicant profile.
The lender has also reminded brokers that all new business and product transfer applications must be submitted by 10pm today, March 27, to secure current rates. For customers who have not yet accepted their product transfer offer, a new product can be selected through the online mortgage transfer service, with a fresh offer issued. Those who have already accepted a new deal can still switch to another option or cancel their arrangement, but this must be done at least 14 days before the new deal starts.
From tomorrow, brokers can access Santander’s online mortgage transfer service via Introducer Internet to view clients’ available product transfer rates, which will not be listed on sourcing systems.
Meanwhile, TSB is also making changes to its product range, introducing new BTL two- and five-year fixed house purchase products at 75% to 80% LTV, with rates starting at 4.84%. The lender is also reducing rates on selected BTL, product transfer, and additional borrowing products.
TSB will lower two-year fixed house purchase rates for 0% to 75% LTV by up to 0.15%, while two-year fixed remortgage rates (0% to 75% LTV, £0 fee) will drop by 0.10%. Reductions of up to 0.20% will apply to two- and five-year fixed remortgage rates for 75% to 80% LTV.
For product transfer and additional borrowing, BTL two-year fixed 0% to 75% LTV (£0 fee) will be reduced by 0.10%, while two- and five-year fixed 75% to 80% LTV product transfer rates will fall by up to 0.20%. Additional borrowing on BTL two-year fixed 0% to 75% LTV will be lowered by 0.10%.
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