Lender also updates affordability assumptions for residential and BTL borrowers
Santander is making small increases to a range of fixed rates for new residential and buy-to-let (BTL) business, as well as for selected product transfer deals, from tomorrow, Feb. 3.
The changes affect parts of the fixed-rate range only. Large loan, tracker and BTL product transfer rates are unchanged.
For residential home movers, including new-build borrowers, all 75%, 85% and 90% loan-to-value (LTV) two-year fixed rates will increase by up to 0.04 percentage points. Selected three- and five-year fixed rates at 60% LTV, and certain 75% LTV options, will rise by up to 0.07 percentage points.
Among first-time buyer products, selected 85% LTV and all 90% and 95% LTV two- and five-year fixed rates will go up by as much as 0.06 percentage points.
In the remortgage range, three- and five-year fixed rates at 60% and 75% LTV will rise by up to 0.04 percentage points.
For BTL purchase business, 60% and 75% LTV five-year fixed rates will increase by 0.04 percentage points. The same 0.04 percentage point hike will apply to 60%, 65% and 75% LTV five-year fixed rates in the BTL remortgage range.
On product transfers, all 60% LTV and selected 75% LTV five-year fixed rates will rise by up to 0.04 percentage points.
In recent weeks, major UK lenders have continued to fine-tune mortgage pricing, with a mix of marginal increases and cuts across residential and buy-to-let ranges.
Meanwhile, alongside its latest pricing changes, Santander will update the household expenditure figures used in its residential affordability assessments. The lender will also apply minor increases to BTL affordability rates, with the standard stressed rate moving from 6.99% to 7%, and the rate for pound-for-pound remortgage and five-year fixed products increasing from 4.99% to 5%.
Brokers have until 10pm today, Feb. 2, to submit full mortgage applications under the current terms. Applications submitted from 6am tomorrow will be assessed using the revised lending policy, and any cases with material changes from that date will be re-underwritten under the new criteria.
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