Homebuyers and homeowners looking for a mortgage deal will welcome the latest news from Santander and TSB, as both lenders have announced reductions in their mortgage rates. These changes, effective from today, offer improved affordability and monthly interest payments for first-time buyers, home movers, and those looking to remortgage. In this article I will give you a recap of the Santander mortgage and TSB mortgage rate reductions and also a little insight into how mortgage advisors are reacting.
Santander Mortgage Rate Cuts
Santander is making several reductions across its mortgage product range, with rates decreasing by up to 0.10% in some cases. The key changes include:
- First-Time Buyers: 60% Loan-to-Value (LTV) two-year fixed rates will reduce by up to 0.07%, while 85-95% LTV two-year fixed rates will drop by up to 0.08%.
- Home Movers: Selected two-year fixed rates between 60-75% LTV will decrease by up to 0.09%.
- Remortgage Customers: Some 60-75% LTV two-year fixed rates will be cut by up to 0.07%, while all 75% LTV five-year fixed rates will reduce by up to 0.10%.
- Product Transfers: Selected 60-75% LTV two-year fixed rates will drop by up to 0.07%, and all 75% LTV five-year fixes will see reductions of up to 0.10%.
These changes follow Santander’s recent decision to lower residential affordability rates by up to 0.75%, making it possible for many borrowers to access between £10,000 and £35,000 more than before!
TSB’s Mortgage Rate Reductions
TSB is also reducing rates across various mortgage products, helping buyers secure more competitive deals. The changes include:
- Two-Year Fixed Rates: First-time buyer and home mover products at 75-80% and 80-85% LTV with no fee will be reduced by 0.10%, along with 85-95% LTV products.
- Three-Year Fixed Rates: First-time buyer and home mover products between 75-85% LTV will be reduced by up to 0.15%.
- Five-Year Fixed Rates: First-time buyer and home mover products at 90-95% LTV will decrease by 0.10%.
These rate cuts make home loans more affordable for borrowers at different stages of their property journey, rather than only benefitting seasoned property owners.
A Positive Step for Mortgage Borrowers
The reductions from Santander and TSB signal a really positive shift in the mortgage market, providing buyers and homeowners with better access to competitive mortgage rates. Lower fixed-rate deals can help reduce monthly repayments and improve affordability, making homeownership more accessible in an evolving economic environment.
Louis Mason, Marketing and Communications Director at Oportfolio Mortgages, welcomed the reductions, stating: “The recent rate cuts from Santander and TSB are a positive move for borrowers. Lower fixed rates provide an opportunity for more people to secure affordable home financing, whether they are first-time buyers or looking to remortgage. It’s great to see lenders responding to market conditions in a way that benefits consumers.”
Find the Right Mortgage Deal with Oportfolio Mortgages
If you’re looking for a new mortgage or considering remortgaging, now is the time to explore your options. At Oportfolio Mortgages, our expert advisors can help you around the latest rate changes and find the best deal for your circumstances. Contact our team today to discuss how these mortgage rate reductions could benefit you. We are here to help.
