Lenders implement new price changes across residential and BTL products
High street lenders Santander and HSBC have both announced a new round of mortgage rate decreases, with changes taking effect from tomorrow, Nov. 11.
The reductions span a wide range of residential and buy-to-let products, reflecting ongoing adjustments in the market as lenders respond to shifts in funding costs.
Santander has reduced fixed rates by up to 14 basis points (bps) for both new business and product transfer customers. This marks the second time this month that the bank has lowered rates, following a previous reduction for home mover products last week.
The bank’s latest rate changes apply to two-, three- and five-year fixed rates across loan-to-value (LTV) bands from 60% to 95%. For example, a 60% LTV two-year fixed rate with no fee and £250 cashback has dropped by 13bps to 3.93%, while a 90% LTV five-year fixed rate for first-time buyers now stands at 4.44% after a 0.14% cut.
Remortgage customers will also see reductions, with two- and five-year fixed rates at 60% to 85% LTV down by up to 0.10%. Three-year fixed rates at 60% to 75% LTV have fallen by as much as 14bps.
In addition, Santander has introduced new five-year fixed large loan options for remortgage borrowers, starting at 3.90% for loans of at least £500,000. All new rates are available through brokers and direct channels, in line with the lender’s ‘no dual pricing’ commitment.
HSBC has similarly announced rate decreases across its residential and buy-to-let ranges. The changes affect existing customer switches, additional borrowing, first-time buyer and home mover products, as well as remortgage and energy-efficient home options.
Both two- and five-year fixed rates at various LTV tiers are being reduced, including products for properties with ‘A’ or ‘B’ EPC ratings. Buy-to-let customers, both for purchase and remortgage, will also benefit from lower rates on fee saver, standard, and premier exclusive products.
The adjustments come as lenders continue to respond to improved funding conditions and market expectations regarding future interest rate movements.
“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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