Santander has announced rate changes on its residential, buy-to-let, and product transfer mortgage ranges, with most of the fixed rates increasing from tomorrow. There is one piece of positive news, however, for first-time buyers with a small reduction on 95% LTV products.
Key Mortgage Rate Changes from Santander
Santander is increasing selected residential and buy-to-let fixed mortgage rates on its new business range from Thursday, including large loan deals.
The highlights are as follows:
Residential home mover mortgages
- 60–90% LTV two and five-year fixed rates: increasing by up to 0.10%
- 60–75% LTV 10-year fixed rates: increasing by 0.07%
- All new build rates: increasing by up to 0.10%
First-time buyer mortgages
- 75–90% LTV two and five-year fixed rates: increasing by up to 0.11%
- 60–75% LTV 10-year fixed rates: increasing by 0.07%
- 75–90% LTV new build rates: increasing by up to 0.11%
- Large loan rates at 60% LTV: increasing by 0.07%
Residential remortgage deals
- Two and five-year fixed rates: increasing by up to 0.09%
- 60–75% LTV 10-year fixed rates: increasing by 0.07%
Buy-to-let mortgages
- Purchase and remortgage products between 60–75% LTV: increasing by 0.07%
Product transfers
- Some residential and all buy-to-let fixed rates: increasing by up to 0.07%
Positive News for First-Time Buyers
While most products are increasing, Santander is reducing 95% LTV two-year fixed rates for first-time buyers by up to 0.06%, including new build mortgages. This move could provide some relief for those entering the housing market with smaller deposits.
Expert Opinion
Louis Mason, Head of Marketing and Communications at Oportfolio Mortgages, commented on the changes:
“We’ve seen several lenders increasing mortgage rates in recent weeks as markets remain uncertain. While rate rises are never welcome news for borrowers, it’s encouraging that Santander is cutting a bit off for first-time buyers at 95% LTV. At Oportfolio Mortgages, we always say you have to shop around, and somebody out there still has some sharp deals. Anybody approaching the end of their fixed term or buying for the first time should take professional advice to get the most suitable deal.”
What This Means for Homeowners and Buyers
With Santander joining other major UK lenders in hiking rates, borrowers may face more expensive monthly payments unless they lock in a deal imminently. However, the lender’s small reduction for high LTV first-time buyer mortgages shows competition for this market segment remains intense.
For homeowners looking to remortgage, small changes in fixed rates can add up significantly over the life of a loan, so product comparison is vital before committing.
How Oportfolio Mortgages Can Help
At Oportfolio Mortgages, we:
- Compare Santander mortgages with a wide panel of UK lenders
- Help first-time buyers, home movers, and landlords with rate fluctuations
- Provide advice on fixed or variable rates dependent on current market conditions
- Help remortgagers secure competitive offers in the face of rising rates
Get in touch today for a discussion on your mortgage options.
Mortgage FAQs – Santander Rate Changes
1. Why are Santander mortgage rates going up?
Mortgage rates closely follow swap rates and general market conditions. With inflation still stubborn and economic uncertainty ongoing, lenders are repricing accordingly.
2. Are all Santander mortgage rates going up?
No. While most two, five, and ten-year fixed rates are rising, Santander is reducing 95% LTV two-year fixed rates for first-time buyers by up to 0.06%.
3. Should I remortgage before rates rise further?
If your current deal is ending in the near future, it may be wise to secure a rate now. Mortgage offers tend to be valid for several months, so you can lock in now.
4. What is LTV in mortgages?
Loan-to-Value (LTV) is the percentage of your home’s value that you are borrowing. For example, an 80% LTV mortgage would mean you borrow 80% of the property’s value and pay 20% as a deposit.
5. Will Oportfolio Mortgages secure me a better deal?
Yes. Our specialist team work with Santander and other UK lenders to obtain the most suitable mortgage product for your situation.
Looking for a mortgage or remortgage deal? Contact Oportfolio Mortgages today and organize expert guidance and competitive rates.
