Santander has cut rates below 4% on two- and five-year residential mortgages, effective 13 January.
These changes make Santander the first high-street mortgage lender to offer a sub-4% rate this year.
Eligible customers will be able to apply for one of four new products as the lender launches a range of two- and five-year fixed, 3.99%, residential purchase and remortgage rates, at 60% loan-to-value (LTV).
The lender has made reductions of up to 0.40% on more than 80 other mortgage products covering residential purchases, remortgages, new build purchases, buy-to-let (BTL) purchases and BTL remortgages.
Santander has also introduced a range of 65% LTV options on BTL for purchase and remortgage customers.
New products and rates include:
Residential purchase: 60% LTV two and five-year fixed rate, 3.99% with a £1,999 fee.
Residential remortgage: 60% LTV two and five-year fixed rate, 3.99% with a £1,749 fee.
BTL purchase: 65% LTV, two-year fixed rate, 4.35% with a £1,749 fee or 4.89% with no fee; and five-year fixed rate, 4.32% with a £1,749 fee or 4.59% with no fee.
BTL remortgage: 65% LTV, two-year fixed rate, 4.35% with a £1,749 fee or 4.89% with no fee; and five-year fixed rate, 4.25% with a £1,749 fee or 4.52% with no fee.
Santander UK head of homes David Morris says: “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 home-buying journey.”
“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.”
Trinity Financial product and communications director Aaron Strutt commented: “Santander has had a tricky time lately with all the talk of exiting the UK market so this really is positive news. It has been about three months since we last had sub-4% fixed rates but it seems a lot longer. It is safe to say these cheap mortgages will be very popular particularly as they are stand out best buys.”
He added: “It is great to have sub-4% fixed rates available again because they really are the new benchmark for cheap mortgages. There is clearly a need for more competitively priced rates with so many first-time buyers keen to get on the property ladder this year and a reported 1.8 million homeowners needing to remortgage. If Santander can launch 3.99% fixes then other lenders can do it too, so this is hopefully the start of the much anticipated price war.”
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