Santander cuts residential purchase, remortgage fixed rates

remortgage

Selected fixed rates on its new business range were cut by between 5 basis points and 29 basis points

Santander, one of the UK’s biggest mortgage lenders, has cut selected residential purchase and remortgage fixed rates by up to 29 basis points.

Selected fixed rates on its new business range were cut by between 5 basis points and 29 basis points.

Its 75 per cent loan-to-value (LTV) five-year fixed rate residential purchase mortgage with a £999 product fee is now priced at 5.30 per cent, down from 5.59 per cent. The no product fee option now has a rate of 5.46 per cent, which earlier stood at 5.75 per cent.

The lender’s 75 per cent loan-to-value two-year fixed rate residential purchase mortgage with no product fee is now priced at 6.22 per cent, from 6.49 per cent previously. The rate of its 85 per cent loan-to-value two-year fix residential purchase mortgage with a £999 product fee is now 6.09 per cent, down from 6.27 per cent, while the 90 per cent loan-to-value two-year fix residential purchase mortgage with no purchase fee now has a lowered rate 6.57 per cent, from 6.69 per cent.

The lender said no changes were made to its residential trackers and its BTL range, as well as to its product transfer rates.

Santander’s rate cuts – effective from August 14 – follow rate reductions made recently by other high street lenders. This was the second time this month that Santander has cut fixed mortgage rates.

Santander is the latest lender to enter the price fray, said Peter Stamford, director of Moor Mortgages. Borrowers and brokers alike will definitely welcome them aboard.

If a couple more big lenders jump in, too, we might toast the UK mortgage market’s brightest week for quite some time. All eyes are on this week’s jobs data and inflation numbers. This week is going to be a big one for borrowers.

Justin Moy, founder of EHF Mortgages, agreed that it was great to see more rate cuts from one of the high street mortgage lenders.

With the positive GDP figures, along with inflation figures due shortly, it is definitely a bold move by Santander, Moy added. The fact this move came after the GDP data published early on Friday may indicate Santander thinks we are at, or at least near, the peak of interest rates.

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