Lender will also raise the LTV cap for remortgages with capital raising
Santander has lowered a range of fixed rates across its residential and buy-to-let mortgage products, effective from today, Oct. 27.
The changes apply to both new business and product transfer customers, with the high street lender also launching new large loan products for remortgage clients and adjusting the minimum loan size for standard residential remortgages to £25,000.
For home movers, three-year fixed rates at 60% and 75% loan-to-value (LTV) have been reduced by up to 0.36%. The 60% LTV three-year fixed with no fee and £250 cashback now stands at 4.06%, while the 75% LTV equivalent with a £999 fee and £250 cashback is set at 3.96%. The 75% LTV option with no fee and £250 cashback has dropped to 4.20%.
First-time buyers will see reductions of up to 0.16% on two- and five-year fixed rates at 85% and 90% LTV. The 90% LTV two-year fixed with a £999 fee and £250 cashback is now 4.42%, and the fee-free version is 4.70%.
For remortgage customers, all 60%, 75%, 85%, and 90% LTV two- and five-year fixed rates have been cut by up to 0.13%. New large loan products have also been introduced, with rates starting from 3.73% for a 60% LTV two-year fixed, subject to a £1,999 fee and a minimum loan of £500,000. Additional large loan options are available at both 60% and 75% LTV, with maximum loans up to £5 million.
New build home mover and first-time buyer products have also seen rate reductions, mirroring the changes in the core residential range. The 75% LTV three-year fixed new build exclusive for home movers, with a £999 fee and £250 cashback, is now 3.96%. For first-time buyers purchasing new builds, the 90% LTV two-year fixed with a £999 fee and £250 cashback is 4.42%, and the fee-free version is 4.70%.
Buy-to-let purchase rates at 60% and 75% LTV have been reduced by 0.05%, with the 60% LTV two-year fixed now at 3.94% with a £1,749 fee. For buy-to-let remortgages, reductions of up to 0.10% apply, including a 65% LTV two-year fixed at 3.96% with a £1,749 fee.
The revised rates are available to all applicants, whether applying through intermediaries or directly, in line with Santander’s commitment to equal pricing for brokers and direct customers.
From tomorrow, Oct. 28, Santander will increase the maximum LTV for remortgages with capital raising from 85% to 90%, offering greater flexibility for clients seeking to release equity for purposes such as home improvements or significant purchases. However, where capital raising is intended for debt consolidation, the maximum LTV will remain at 85%.
Applications submitted in full by 10pm today, will not be affected by these changes. Those submitted from 6am tomorrow, or any cases with material changes after this time, will be assessed under the new policy.
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