Santander cuts mortgage rates and launches new deals

From today (Thursday 13 May), Santander will reduce 2-year fixed rate mortgages by up to 0.14 per cent across its main range as well as for homebuyer and remortgage offers, further enhancing its market leading offering for borrowers looking for a value-for money deal.  The new rates are as follows:

2-year fix at 3.24 per cent with a £995 fee, available up to 70 per cent LTV for all borrowers

2-year fix at 3.39 per cent with a £799 fee, available up to 70 per cent LTV to remortgage (free legals and free valuation) and homebuyer (free valuation and £250 cashback on completion) customers

2-year fix at 3.65 per cent with a £995 fee available up to 75 per LTV with a maximum loan size of £250,000

2-year fix at 3.74 per cent with a £995 fee available up to 75 per cent LTV to remortgage and homebuyer customers

2-year fix at 4.25 per cent with no fee, available up to 75 per cent LTV to remortgage and homebuyer customers

For borrowers looking for more flexibility on the size of their fee, Santander is introducing ‘high' and ‘low' fee options for 2-year trackers.  Available up to 70 per cent LTV, products are available with either a £495 fee (at 2.73 per cent) or a £1,495 fee (2.53 per cent).  The ‘high' fee is particularly useful for those wanting to take out a larger loan because borrowers will benefit from paying the lower rate, while for those wanting a smaller loan or nearing the end of their mortgage, taking advantage of the ‘low' fee could save them unnecessary money on mortgage fees.

Santander has also increased the maximum loan size on its 2-year 70 per cent LTV tracker from £550,000 to £1million.  The rate is 2.63 per cent with a £995 fee available to homebuyers only.

Phil Cliff, Mortgage Director for Santander commented: "Our latest rate reductions mean borrowers can take advantage of even more competitive 2-year fixes, ideal for those looking for the peace of mind provided by a value-for-money fixed rate deal. Those borrowers wanting the flexibility of a tracker rate can take advantage of the new fee options."

Finally, Santander still has special offers available in branch to existing current account customers who can save £1,095 for a limited period only.  The products include fee-free competitive rates up to 90 per cent LTV and £100 cash back on home insurance.

For more information on mortgages from Santander, log on to santander.co.uk.