Lender also trims pricing across first-time buyer, home mover and remortgage ranges
Santander is reducing rates on a number of higher loan-to-value (LTV) products, including a cut on its recently launched 98% LTV My First Mortgage to below 5%.
From tomorrow, March 4, the rate on My First Mortgage will fall by 0.20 percentage points to 4.99%.
The product is available to first-time buyers purchasing an existing property, with a minimum £10,000 deposit and a maximum loan size of £500,000. It continues to carry no product fee and a £250 cashback, and is accessible only via intermediaries or Santander advisers.
“We launched My First Mortgage with the aim of helping more first-time buyers take their initial step onto the property ladder,” said David Morris (pictured right), director of homes at Santander UK. “I’m proud to say that in the weeks since we’ve launched, we have done just that with many first-time buyers receiving offers of lending under My First Mortgage.
“It’s fantastic to be able to go one step further and reduce the interest rate so soon after launch to that crucial sub-5% mark, that we know so many buyers are seeking when looking at higher LTV borrowing. Our latest cuts show that we’re also still here to support a range of buyer types, with reductions across our new build, home mover and remortgage products helping customers further manage the costs of owning their dream home.”
Meanwhile, the lender is also repricing all of its first-time buyer products at 85% LTV and above, with reductions of up to 0.38 percentage points. These changes include a return to sub‑4% pricing at 90% LTV, with a two-year fixed rate at 3.99%. Cuts of up to 0.33 percentage points are also being made to a number of higher LTV home mover and new-build products.
For home movers, all two-year fixed rates at 85%, 90% and 95% LTV are being reduced by up to 0.18 percentage points, while all three-year fixed rates at 85%, 90% and 95% LTV are being reduced by up to 0.33 percentage points.
Santander is also cutting rates for remortgage customers, with two-year fixes at 85% and 90% LTV being cut by up to 0.11 percentage points. Three-year fixed rates at 60% and 75% LTV are being reduced by up to 0.08 percentage points, and five-year fixed rates at 85% and 90% LTV are being cut by up to 0.05 percentage points.
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