Two-year fixes for first-time buyers fall by up to 0.28%
Santander UK will cut rates across a tranche of higher loan-to-value (LTV) residential mortgages from tomorrow, 16 April, reducing prices on products aimed at borrowers with smaller deposits, including first-time buyers and home movers.
For first-time buyers, all 85% to 95% LTV two-year fixed-rate mortgages will fall by as much as 0.28 percentage points. The revised range will start from 4.90%.
The lender is also reducing selected three- and five-year fixed rates, alongside changes to 10-year fixed products and tracker mortgages, across both first-time buyer and home mover propositions. Santander said the repricing forms part of broader adjustments to selected residential lines, including new-build exclusive products and large-loan offerings.
Within the home mover range, Santander will also reduce all 60% to 95% LTV two-year fixed rates by up to 0.28 percentage points, and cut tracker products by up to 0.25 percentage points. Similar reductions will apply to new-build products for both first-time buyers and movers.
The new rates will be available for applications made directly with the bank or through intermediaries, under Santander’s no dual pricing approach.
“It’s natural that those looking to buy, move or remortgage in the current market may be feeling uncertain about what they should do next,” said Ben Merritt (pictured right), who was recently appointed head of mortgage trading at Santander UK.
“While the recent trend has been to see rates increase, we’re pleased that we’re able to pass on a reduction in borrowing costs following a fall in swap rates.
“While no-one can accurately predict where the market will go next, taking professional advice on what’s possible from your lender or an independent broker, can help borrowers to make a decision based on the current market and what any movements mean for them specifically.”
Aaron Strutt, product director at mortgage broker Trinity Financial, said Santander announcing cuts to its fixed and tracker rates was “a rare bit of good news in the mortgage market.”
“Many of the bigger lenders have not changed their rates for a few weeks now, which is something we have not been used to for a while,” he stated.
“The best tracker rate mortgages are still looking like a good bet because they are so much lower than lots of the two-, three- and five-year fixes. This change from Santander hopefully means that some of the other lenders will bring their rates down a bit as well.”
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