Santander Fixed Rate Mortgage Increases Are on the Way!
Homebuyers and remortgagers should act quickly as Santander has announced a widespread increase in its fixed rate mortgage products, set to take effect on Tuesday the 27th of May 2025. These changes will affect both new business and product transfer mortgage rates across the board, including home movers, first-time buyers (FTBs), large loans, remortgages, and Buy to Let (BTL) products.
Key Fixed Rate Mortgage Increases
Santander will be increasing all standard 2 and 5 year fixed rate mortgages by 0.10%. This includes:
- 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 deals (60-75% LTV)
In the product transfer category, 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 for residential and 60-75% LTV for BTL).
Mixed News for New Build Mortgages
While the majority of new build fixed rates are also increasing, Santander has made selective reductions to specific new build mortgage products:
- Home mover new build mortgages: Some 75-85% LTV 2 year fixed rates will decrease by up to 0.04%, and all 90% LTV 5 year fixed rates are being reduced by 0.03%.
- FTB new build mortgages: A specific 85% LTV 2 year fixed rate will be reduced by 0.01%.
These reductions offer a narrow window of opportunity for new build buyers to lock in more competitive deals before further market adjustments.
Expert Advice: Don’t Delay
Mortgage professionals are advising borrowers to act swiftly to avoid higher rates. Jade Pinkerton, Senior Mortgage and Protection Advisor at Oportfolio Mortgages, says:
“In a rising rate environment, time is of the essence. We’ve seen several lenders, including Santander, increase their fixed rates in recent weeks, and this trend looks set to continue. Acting now could save you thousands over the life of your mortgage. For first-time buyers and those looking at new build properties, this is a great moment to speak with a mortgage advisor. Some of the new build rates are actually decreasing, and getting the right advice can help you take advantage of these rare reductions.”
Why the Mortgage Rate Hike Matters
Fixed rate mortgages offer the security of predictable monthly payments, which is especially attractive amid economic uncertainty. However, as rates rise, the cost of borrowing increases, reducing overall affordability for many.
If you are:
- A first-time buyer
- A home mover
- A buy-to-let investor
- Or looking to remortgage
…now is the time to review your mortgage options.
Final Thoughts: Secure Your Rate Now
With Santander increasing fixed mortgage rates across nearly all products, and other lenders likely to follow, the message is clear: Don’t wait.
Whether you’re purchasing your first home, moving up the property ladder, investing in buy-to-let, or simply looking to remortgage at a competitive rate, the guidance of a trusted mortgage advisor is more valuable than ever. Get in touch with Oportfolio Mortgages today to secure the best fixed rate mortgage deals available before rates rise again.
