Residential and BTL products see rate hikes, with some first-time buyer rates reduced
Santander has implemented a series of rate changes affecting its residential and buy-to-let mortgage products, with most fixed rates moving higher from today.
The high street lender has increased rates for new business in its residential home mover range, with all two- and five-year fixed products at 60-90% loan-to-value (LTV) rising by up to 0.10%. Ten-year fixed rates at 60-75% LTV have also gone up by 0.07%. Home mover new build rates are subject to increases of up to 0.10%.
First-time buyers will see all two- and five-year fixed rates at 75-90% LTV increase by up to 0.11%, while 10-year fixed rates at 60-75% LTV are up by 0.07%. New build rates for first-time buyers at 75-90% LTV have also increased by up to 0.11%. Large loan rates for both home movers and first-time buyers at 60% LTV have risen by 0.07%.
For residential remortgage customers, all two- and five-year fixed rates have increased by up to 0.09%, and 10-year fixed rates at 60-75% LTV are up by 0.07%.
Buy-to-let purchase and remortgage products at 60-75% LTV have seen rates rise by 0.07%. In the product transfer range, selected residential and all buy-to-let fixed rates have increased by up to 0.07%. In addition, some residential product transfer rates at 60-75% LTV have gone up by as much as 0.06%, while the seven-year fix at 60% LTV has increased by 0.03%.
Santander’s rate hikes come despite the Bank of England lowering the base rate from 4.25% to 4% earlier this month. However, swap rates—which are a key factor in the pricing of fixed rate mortgages—have moved higher. As a result, several lenders have raised their fixed rates in recent days. NatWest, Royal Bank of Scotland, and NatWest Intermediary Solutions have each increased rates by 0.20%. Gen H and Vernon Building Society have both raised rates by 0.15%, while Hodge has also implemented a 0.20% increase.
Amid its product rate increases, Santander has also reduced two-year fixed rates for first-time buyers at 95% LTV by up to 0.06%, including new build options.
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