It slashes fixed rates by up to 50bps
Santander has reduced selected residential purchase mortgages, remortgages, buy-to-let, and product transfer fixed rates by up to 0.50%.
Five-year fixed rates that have been reduced include residential purchase mortgage products with a £999 product fee at 60%, 75%, and 90% loan-to-value (LTV) and they are now priced at 4.95%, 5%, and 5.44%, respectively.
Reduced remortgage rates include two-year residential fixes with a £999 product fee at 60%, 75%, and 85% LTV, which are now priced at 5.64%m 5.69%, and 6%, respectively.
Santander, which announced the rate cuts yesterday, said there would be no changes to residential tracker mortgages.
The full list of new rates can be found on the lender’s intermediary website.
Mortgage brokers reacting to Santander’s move believed more cuts were likely with the rate war starting to heat up.
“This is a positive move by Santander, with leading deals on both two-year and five-year products,” commented Justin Moy, managing director at EHF Mortgages. “Sub-5% lending is a significant move fuelled by the Bank of England hold on the base rate, and better than expected inflation figures.
“Competition in the market will mean that other lenders will follow throughout the week, as they all clamber for business in the run-up to Q4.”
Santander is the latest lender to cut fixed rates. I am sure they won't be the last this week.
— Riz Malik (@Riz_1) September 25, 2023
“Very positive reductions from Santander who are showing they are keen to fight for market share,” added Stephen Perkins, managing director at Yellow Brick Mortgages. “It will be very interesting to see the next wave of rate reductions across the market in response.”
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