In response to the changing market conditions, Santander UK has announced it will temporarily withdraw all new business residential and buy-to-let fixed and tracker rates as of 7.30pm on Monday, 12th June.
While the bank’s product transfer range will remain available, Santander plans to relaunch its full new business range on Wednesday, 14 June.
The move was not unexpected with brokers having been anticipating a move from Santander following similar moves from the other high street lenders.
Free PR platform Newspage asked brokers for their thoughts. Here’s what they had to say.
Katy Eatenton, mortgage & protection specialist at Lifetime Wealth Management:
“Santander was the only lender remaining that hadn’t repriced, so this was expected. Hopefully their systems will be able to cope with the massive influx of applications they will receive today. I know their website had problems over the weekend.”
Justin Moy, managing director at EHF Mortgages:
“Santander is probably the last lender to increase rates in the latest batch of changes, so this was not unexpected. And they have given us a reasonable amount of notice compared to some lenders, although still not 24 hours.
“Having seen TSB announce some rate reductions this morning, hopefully this is the start of the end of the recent stresses and strains.”
Graham Cox, founder at SelfEmployedMortgageHub.com:
“Gilt yields and swap rates, which determine the cost of borrowing for lenders in the money markets, continue to climb in the wake of the disastrous inflation figures announced last month. The result is lenders are finding it increasingly difficult to price fixed-rate deals profitability.
“In addition, any bank or building society that comes out cheapest is getting flooded with too many applications to cope, which is no doubt what’s happening with Santander.”
Rob Gill, managing director at Altura Mortgage Finance:
“What started with smaller lenders dramatically pulling out of the market has now spread to much larger lenders with Nationwide, HSBC and most recently Santander announcing short-notice withdrawals.
“While there are some tentative signs that market turmoil is settling, lenders are still working to manage volumes and recover from some very challenging market conditions over recent weeks.”
Michelle Lawson, director-mortgage & protection adviser at Lawson Financial Ltd:
“I’m really not surprised about this to be fair. I fully expected this on Friday. Kudos to Santander for giving notice, I would still prefer the 24hrs notice as per our campaign for the 24hr Pledge as this would have been known on Friday and I am sure before this even.
“As products are not going to be launched until Wednesday hopefully they will reprice for the longer term as TSB have announced today that they are reducing rates which is promising.”
