Lender responds to falling swap rates with cuts of up to 0.16%
Santander UK has lowered interest rates on a selection of remortgage deals within the 60% to 75% loan-to-value (LTV) band, with changes taking effect from today.
The reductions affect both two- and five-year fixed rate products, with decreases of up to 0.16 percentage points.
The updated pricing brings two-year fixed remortgage rates down to a starting point of 3.84%, while five-year fixes now begin at 3.87%. The lender confirmed that the new rates apply to all applicants, whether they go through a broker or apply directly, as part of Santander’s “no dual pricing” commitment to intermediaries.
The move follows a broader trend across the mortgage market. Several major lenders — including Halifax, Barclays, Nationwide, and HSBC — have recently made rate reductions. The shift has been driven by falling swap rates, which have dropped by more than 20 basis points over the past month across two-, three-, and five-year terms. This decline has given lenders more room to offer sharper pricing amid rising competition.
“Industry data predicts around 1.8 million fixed rate mortgages are due to come to an end in 2025,” said Graham Sellar, head of Santander for Intermediaries. “This leaves us in a mixed market, as customers on a five-year fixed rate may be anticipating a rate increase, while those on a two-year fixed will likely be able to secure a lower rate than they’re currently on.
“Brokers are likely to be seeing an uptick as customers take much-needed advice to ensure they get the best deal for them, and we hope our latest range of reductions help more customers in their homeownership journeys.”
Among the changes, the 60% LTV two-year fixed rate with a £999 fee has been cut by 0.10% to 3.84%, while the same product with no fee has dropped by 0.16% to 4.10%. The 60% LTV five-year fixed rate with a £999 fee has been reduced by 0.09% to 3.87%.
For customers borrowing at 75% LTV, the two-year fixed rate with a £999 fee is now 4.09%, following a 0.10% cut, and the five-year version is 4.01%, down 0.07%.
Santander is also continuing to offer remortgaging customers either free legal services through its panel solicitors or a £250 cashback, which is paid to the conveyancer upon completion.
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