Santander has announced a wave of interest rate cuts across a range of mortgage products, a massive win for home owners and home buyers.
The high street lender is cutting rates on selected fixed rates across its purchases, remortgage, buy-to-let and new builds.
In addition, Santander announced the launch of a range of new two-year tracker products for large loans, up to 75 per cent loan-to-value (LTV).
Homeowners negotiating a new lease and homebuyers hoping to get on the property ladder have faced a tough housing market in recent years.
Mortgage repayments have risen in recent years thanks to the Bank of England’s decision to raise the country’s prime rate and keep it at 5.25 per cent.
Analysts are pricing in a rate cut sometime later this year, with lenders such as Santander taking action before then.
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Here’s the full list of mortgage rate cuts and changes Santander is introducing as of today (June 11):
- New 2 year large loan tracking series for purchase and remortgage clients. This includes a two-year 60 per cent LTV tracking rate of 6.04 per cent with a product fee of £1,999 for loans up to £5m and a two-year 75 per cent LTV tracking rate of 6.24 per cent with a £1,999 product. up to £3 million.
- Selected residential fixed rates are reduced by 0.02 per cent to 0.14 per cent for purchases and remortgages, including 60 per cent LTV with a 5-year fixed rate to 4.28 per cent for loans up to £3m for purchases.
- Select Buy to Let fixed rates are reduced by 0.14 per cent for purchases.
As well as these cuts, Santander has also confirmed product transfer changes when someone changes their current mortgage product to a new one with the same bank or building society.
Clients who wish to change or cancel their new mortgage deal can select a new product in the online transfer service and, if they have not yet accepted the original offer, a new offer will be issued.
If customers have accepted the new offer, they can switch to the new offer or cancel the offer reserved for them
However, they must do this at least 14 days before the start of their new shops.
According to research by Moneyfactscompare, the two-year average is firm mortgage rates fluctuated by less than one percent over the seven-year period between April 2015 and April 2022, with five-year fixed deals also stable over that period.
The average two-year fixed deal was below two percent in July 2022, but has since tripled to 6.84 percent in just three years following the market’s reaction to the 2022 mini-budget.
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The high street lender is making changes to its mortgage range
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James Hyde, spokesman for Moneyfactscompare, said: “Mortgage rates may have fallen significantly since their peak last year, but they remain much higher than they have typically been over the past 14 years.
“For example, those with a five-year fix coming to an end in June 2024 can expect their interest payments to almost double, with average rates rising from 2.85 per cent then to 5.5 per cent now.
“If they want to fix for a shorter period to keep their future options open, rates will be even higher: the average two-year is currently close to six percent.
“At least savers are now seeing a real-time return on their deposits, with easy access accounts paying out an average of less than one per cent since May 2010 – despite inflation averaging over three per cent over the same period. “