Santander for Intermediaries Increase Mortgage Rates

by | Tuesday 25th Jul 2023 | Mortgage News

In a move that may impact both new and existing borrowers, Santander for intermediaries has recently made adjustments to its mortgage rates and products. The high street bank’s broker-only arm has raised selected residential and landlord rates, prompting reactions from the housing market and prospective homebuyers.

Santander For Intermediaries Increase Rates…Again

The changes include significant alterations to fixed-rate deals for both residential and buy-to-let (BTL) properties. Residential fixes have been lifted by varying degrees, with increases ranging from 0.13% to 0.36%. Meanwhile, BTL fixes have seen a rise of 0.05% to 0.29%. These adjustments are likely to have an effect on monthly mortgage payments for borrowers, potentially influencing their financial planning and budgeting.

One of the notable introductions is the launch of new 60% loan-to-value (LTV) buy-to-let fixed-rate deals. These deals are expected to attract investors seeking stable returns in the property market. However, it should be noted that this comes with a trade-off, as the product fees for BTL fixes have risen from £1,499 to £1,749. Nonetheless, Santander for Intermediaries continues to offer no fee options for BTL deals, albeit in a limited capacity.

Withdrawal Of Large Loan Buy-To-Let Products

In a strategic move, the high street bank has withdrawn larger loan buy-to-let fixed-rate products. This decision could impact investors looking to secure mortgages for higher-value rental properties in places like London. As a result, some borrowers may need to reconsider their financing options or seek alternatives from other lending institutions.

Product Transfers

Existing borrowers who are considering product transfers will also be affected by these changes. For residential fixes, the increase varies from 0.16% to 0.65%, while buy-to-let fixes see a significant rise of 0.30% to 0.67%. These adjustments could lead some borrowers to explore refinancing options with other lenders to potentially find better rates.

New Introductions

In light of these changes, Santander for Intermediaries has also introduced new residential one-year fixes at 6.32% with a reduced product fee of £499, applicable up to 90% LTV. However, for those seeking higher LTVs above 90%, the residential one-year fixes with no product fee have increased by 0.16% to 6.50%. Additionally, all other residential one-year fixes have been withdrawn from the bank’s offerings.

These changes from Santander for Intermediaries come amid a backdrop of ongoing fluctuations in the property market and highlight the importance for borrowers to stay vigilant and consult a mortgage broker like Oportfolio, to keep updated about mortgage rates and offerings from various lenders. For those considering taking out a new mortgage or transferring their existing one, it is crucial to stay informed about the latest developments and seek advice from qualified mortgage advisors to secure the most suitable and cost-effective financing options available.

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