Santander launches under 4% interest rates on two- and five-year RESI mortgages – Mortgage Strategy
The Santanders’ two- and five-year residential mortgages have been reduced by 4% since January 13.
These changes make Santander the fastest mortgage lender that offers no less than 4% this year.
Eligible customers will be able to apply for one of four new products as lenders launch a two- and five-year fixed 3.99% residential purchase and cash rate with a loan price of 60% (LTV).
The lender’s more than 80 other mortgage products have reduced by up to 0.40%, covering residential purchases, repurchase, new build purchases, purchase price (BTL) purchases and BTL Remortgages.
Santander also launched a 65% LTV option on BTL for purchases and cashing in on customers.
New products and prices include:
Residential Purchase: 60% LTV two-year and five-year fixed interest rates, 3.99% and costs £1,999.
Residential Discount: 60% LTV two-year and five-year fixed interest rates, 3.99% and costs £1,749.
BTL Buy: 65% LTV, two-year fixed rate, 4.35%, fee of £1,749, or 4.89%, no fees; five-year fixed rate of 4.32%, fee of £1,749, or 4.59%, no fees.
BTL still counts: 65% LTV, two-year fixed interest rate, 4.35%, fee of £1,749, or 4.89%, no fees; five-year fixed interest rate of 4.25%, fee of £1,749, or 4.52%, no fees.
David Morris, home manager at Santander UK, said: “We are excited to launch a range of new products, as well as the slowdown of our existing range, which will be for every stage of the home purchase journey. Customers have an impact.”
“From potential buyers who want to get on the ladder for the first time to landlords who are buying to the market, we are proud to offer competitive products to help our customers reduce the overall cost of mortgages.”
Aaron Strutt, Director of Products and Communications at Sany Financial, commented: “Santander has had a tough time lately on all topics about exiting the UK market, so it is really positive. News. It’s been about three months since our last low fixed prices, but it seems to be longer. It’s safe to say that these cheap mortgages will be very popular, especially since they are the best purchases.”
He added: “Another there are fixed rates available again at 4% because they are indeed the new benchmark for cheap mortgages. Obviously, having such competitive prices requires higher prices, so many first-time homebuyers are keen to get on this year Real Estate Ladder, 1.8 million homeowners reportedly need to cash in. If Santander can launch a 3.99% fix, other lenders can do that, so hopefully, this is the highly anticipated price war start.”
