Major lenders announce further reductions across fixed rate products
Santander and Barclays have both introduced new reductions to their fixed rate mortgage products, with changes taking effect from tomorrow, Nov. 18.
Santander’s latest repricing, which apply to both new business and product transfer options, will see rates fall by as much as 29 basis points (bps). This marks the third occasion in November that the lender has adjusted its rates downward.
The revised rates are accessible to applicants through brokers as well as those applying directly, in line with the lender’s commitment to equal pricing for all channels.
For home movers, two-year fixed rates with loan-to-value (LTV) ratios between 60% and 95% will decrease by up to 14bps, with the lowest rate set at 3.55%. Three-year fixed rates in the same LTV range will drop by up to 29bps, beginning at 3.60%. Five-year fixed rates will see reductions of up to 9bps, starting at 3.76%.
First-time buyers will benefit from reductions of up to 14bps on two-year fixed rates at 90% and 95% LTV, with rates from 4.28%. Five-year fixed rates at 85% and 95% LTV will fall by up to 12bps, starting at 4.24%.
For remortgage customers, two-year fixed rates between 60% and 90% LTV will be reduced by up to 14bps, with rates from 3.62%. Three-year fixed rates at 60% to 75% LTV will drop by up to 12bps, starting at 3.80%. Five-year fixed rates between 60% and 90% LTV will decrease by up to 11%, with rates from 3.80%.
New build home mover products will mirror the reductions for standard home movers, with two-year fixed rates from 3.55%, three-year fixed rates from 3.60%, and five-year fixed rates from 3.76%. New build first-time buyer products will see two-year fixed rates from 4.28% and five-year fixed rates from 4.24%.
Buy-to-let purchase products at 60% to 75% LTV will be reduced by up to 18bps for two-year fixes, starting at 3.80%, and by up to 11bps for five-year fixes, starting at 4.01%. Buy-to-let remortgage rates in the same LTV range will fall by up to 12bps for two-year fixes, with rates from 3.77%, and by up to 9bps for five-year fixes, starting at 3.94%.
Meanwhile, Barclays has also announced rate cuts across its residential mortgage range.
The lender’s five-year fixed rates for purchases at 60% LTV now start at 3.81% for Premier products and 3.82% for standard products, both with a £899 product fee. Products with no fee at the same LTV are now available from 3.92%. At 75% LTV, five-year fixed rates begin at 3.90% with a fee and 4.00% without.
For borrowers at higher LTVs, such as 90% and 95%, rates have also been reduced, with the lowest five-year fixed rate at 90% LTV now set at 4.22% for Premier products.
Barclays’ Green Home five-year fixed rates have also been reduced, with the 60% LTV product now available at 3.72% and the 75% LTV at 3.80%, both with a £899 fee.
The adjustments come as both banks respond to ongoing shifts in the mortgage market, marking another round of rate cuts this month.
“Even though base rate has held, there is still good news for mortgage borrowers,” said David Hollingworth, associate director at broker L&C Mortgages. “The fact that the outlook for rates has improved has already resulted in a reduction to the cost of funds for lenders and there’s been a raft of cuts to fixed rates already.
“Most major lenders have trimmed back their rates in the last couple of weeks which has helped bring rates back down. That does mean that the expected cuts to base rate are therefore already being priced into fixed mortgage deals, whereas tracker rates will only react once the base rate is cut.”
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