Santander Fixed Rate Mortgage Increases Are on the Way!
Remortgagers and homebuyers need to act quickly as Santander has announced a blanket increase in its fixed rate mortgage ranges, effective on Tuesday the 27th of May 2025. These will apply to new business and product transfer mortgage rates across the board for home movers, FTBs, large mortgages, remortgaging, and Buy to Let (BTL) products.
Key Fixed Rate Mortgage Increases
Santander is increasing all core 2 and 5 year fixed rate mortgages by 0.10%. These are:
- Residential home mover and FTB mortgages (60-95% Loan to Value, or LTV)
- Large loan products (60% LTV)
- Residential remortgages (60-90% LTV)
- Buy to Let purchase and remortgage transactions (60-75% LTV)
In the product transfer market, fixed rate increases of 0.10% will be applied to all residential 2, 3, 5 and 7 year fixed rates and all BTL 2 and 5 year fixed rates (60-90% LTV residential and 60-75% LTV BTL).
Mixed News on New Build Mortgages
While most new build fixed rates are increasing too, Santander has also made select reductions to some new build mortgage products:
- Home mover new build mortgages: Several 75-85% LTV 2 year fixed rates will drop by up to 0.04%, and every 90% LTV 5 year fixed rate is being cut by 0.03%.
- FTB new build mortgages: A specific 85% LTV 2 year fixed rate will be reduced by 0.01%.
They offer a brief window of opportunity for new build buyers to take advantage of improved deals before more market readjustment.
Expert Tip: Don’t Delay
Borrowers are being advised to act fast by mortgage specialists to avoid greater interest rates. Jade Pinkerton, Oportfolio Mortgages Senior Mortgage and Protection Adviser, says:
“In an environment of rising interest rates, time is critical. We have already seen some lenders increase their fixed rates in the last few weeks, and this is likely to be the trend. Acting now will save you thousands during the course of your mortgage. If you’re a first-time buyer or looking at new build, now is the ideal time to speak with a mortgage adviser. Some of the new build rates are actually decreasing, and seeking proper advice will allow you to make the most of these rare reductions.”
Why the Rise in Mortgage Rate Matters
Fixed rate mortgages have the security of paying a fixed amount each month, which is especially attractive in times of economic instability. However, as rates rise, the cost of borrowing rises with them, making it less affordable for the majority.
If you are:
- A first-time buyer
- A home mover
- A buy-to-let investor
- Or remortgaging
…now is the time to review your mortgage options.
Last Thoughts: Lock in Your Rate Now
With Santander increasing fixed rates on nearly all products, and others certain to follow, the message could hardly be clearer: Don’t wait.
Whether purchasing your first home, stepping up the housing ladder, investing in buy-to-let, or just remortgaging at a good rate, the guidance of a seasoned mortgage advisor is more valuable than ever. Call Oportfolio Mortgages today and secure the best fixed rate mortgage deals available before rates rise again.
