Today Santander has announced a ground breaking reduction in interest rates, with selected residential new business and product transfer 60% Loan-to-Value (LTV) 5-year fixed rates dropping below the 4% mark. A sub 4% mortgage offering has not been seen for many months in the UK mortgage market, in fact rates were around 6% or more only 6 months ago. The announcement, made in a communication released this morning, signifies a significant shift in the mortgage lending landscape.
Sub 4% Mortgage Rates From Santander
Starting on the 10th of January 2024, Santander will be implementing substantial reductions across various mortgage products, affecting both new business and product transfers. The changes include a noteworthy decrease in all standard residential fixed rates, ranging from 0.17% to an impressive 0.82%. Among the highlighted offerings are the 60% LTV 5-year fixed rates, now available at 3.89% for remortgages with a £999 product fee and 3.94% for purchases with the same product fee.
New Build Mortgages
For those eyeing New Build properties, Santander is introducing reductions in exclusive fixed rates, varying between 0.21% and 0.56%. Large loan fixed rates are also taking a dip, with a notable 0.25% decrease.
In the Buy to Let arena, Santander is making bold moves by reducing 2 and 5-year fixed rates by 0.21% to 0.56%, simultaneously withdrawing all Buy to Let 3-year fixed rates from the market. This adjustment aims to provide more competitive options for landlords seeking financing solutions.
Product Transfers For Santander Mortgages
Product transfers are not left out of Santander’s overhaul, with all residential fixed rates seeing reductions between 0.04% and 0.82%. Buy to Let product transfers will also experience cuts, ranging from 0.15% to 0.56%, and the removal of all Buy to Let 3-year fixed rates.
Why Are Rates Being Reduced?
This strategic move by Santander is poised to benefit a broad spectrum of borrowers, from first-time homebuyers to property investors. The decision to offer sub 4% interest rates demonstrates Santander’s commitment to providing affordable and competitive financing options, and hunger for new mortgage lending in 2024.
Speak To a Mortgage Advisor About Sub 4% Mortgages
Experts in the industry anticipate that Santander’s bold initiative may trigger a ripple effect across the mortgage market, influencing other lenders currently offering higher rates to reassess their own offerings. If you want to make the most of these new mortgage rates below 4%, then please feel free to give our team of mortgage advisors at Oportfolio a call today. We have access to all products and lenders available on the market. Call or email us today to arrange a free initial mortgage consultation. We are happy to help.