Santander have been the latest in a bunch of lenders to start reducing their mortgage rates, a good sign after volatile few weeks of increasing rates. Santander lowering mortgage rates comes after the former Prime minister Liz Truss resigned and the new PM Rishi Sunak took control today, steadying the UK market slightly. The value of the pound sterling has also risen compared to the dollar since Sunak claimed his victory.
Accord, Clydesdale, HSBC, and Virgin have all reduced their rates slightly in the last couple of days. Although the rate decreases are small at the moment, it definitely looks like confidence is returning to the lenders and we will hopefully see rates reducing across the board for other lenders too. So, what at the new rates released today by Santander?
What Have Santander Said?
In an email to mortgage brokers, Santander said:
‘On Wednesday the 26th of October, we’re pleased to be reducing selected new business residential fixed rates by between 0.05% and 0.50% and all Buy to Let fixed rates by 0.05%. In addition, we’re withdrawing the 95% LTV 2 year fixed rate. The 95% LTV 2 year tracker and 5 year fixed rate will still be available. In the product transfer range, we’re reducing all residential 5 year fixed rates by between 0.05% and 0.25% and withdrawing all 7 year fixed rates.’
For product transfers:
‘All residential 5 year fixed rates have decreased by between 0.05% and 0.25%. All 7 year fixed rate products will be removed. From Wednesday the 26th of October, product transfer rates will become available for clients whose existing deal ends before 5 March 2023.’
What Do The Experts Say?
Content and communications manager at Oportfolio Mortgages Louis Mason comments:
“We love to see it. Any news of rates reducing is good news in the mortgage world and as always, it is really positive to see that some confidence is returning to the mortgage market. The rates are still much higher than they were a few months ago but Santander lowering mortgage rates among other lenders is a positive step in the right direction. We do definitely still encourage borrowers to contact us to discuss securing a new rate now if your product is coming to an end, but hopefully this means that rate rises won’t be as significant as anticipated.”
If you or anyone you know has a mortgage that is coming to the end of its fixed period, please give our team a call to get you back on to a competitive and manageable new product today.