Santander is set to introduce a suite of rate increases for both fixed and tracker deals across its residential and buy-to-let offering.
Effective from tomorrow, in its new business range, residential fixed rates will be increasing by between 0.04% and 0.20% for both purchases and remortgages.
In addition, all new business large loan fixed rates will be increased by 0.10% and all buy-to-let fixed rates by between 0.05% and 0.25%.
In its product transfer range, Santander will be increasing residential fixed and tracker rates by between 0.04% and 0.20%, and selected buy-to-let fixed rates by between 0.05% and 0.25%.
Reaction:
Ben Perks, managing director at Orchard Financial Advisers:
“Hopes of a Spring reduction to Base Rate have disappeared and we are left facing uncertainty with the vast majority of lenders increasing their rates and shuffling products around on a weekly basis.
“The trajectory for rates this year is downward, and we expected the road to be bumpy, but this road is covered in potholes, speed bumps and has very little clear signage.”
Justin Moy, managing director at EHF Mortgages:
“Another sad start to the week, with more rate increases this time from Santander, and likely to trigger similar activity with other high street lenders.
“It’s unlikely that low inflation will kick start cheaper mortgages, a complete lack of fiscal focus and a ‘let it happen’ attitude from the Government are slowly eroding the property and mortgage markets to a complete standstill.
“Sorry borrowers, no easy way out of this at the moment.”
Katy Eatenton, mortgage and protection specialist at Lifetime Wealth Management:
“Monday mornings are starting to be the bearer of bad news, last week saw rises across the board and this week is no different.
“Santander are the last of the high street lenders to make rises, but I’m sure it won’t be the last for this week!
“All eyes will be on the next Bank of England announcement on May 9th and the inflation announcement on May 15th.”
Gary Bush, financial adviser at MortgageShop.com:
“Miserable news for existing mortgage holders, first-time buyers, and landlords as high street lender Santander increases its mortgage rates by up to a whopping 0.25% from Tuesday.
“When will this nightmare end for UK households?”
Darryl Dhoffer, adviser at The Mortgage Expert:
“Santander increasing rates – yet another roadblock for borrowers, which now seems a common trend amongst lenders.
“Until Threadneedle Street and the circus clowns that currently run Government, offer any encouragement, in the lending market, then I’m afraid, these trends of increases will continue.”
Dariusz Karpowicz, director at Albion Financial Advice:
“Another doom and gloom Monday as Santander announces hikes up to 0.25% on both fixed and tracker mortgage rates.
“This move adds to the uncertainty facing borrowers, with major lenders adjusting their rates upward, signalling that significant rate reductions in the near future are unlikely.
“It’s a tough pill to swallow for those looking to secure new mortgages or renegotiate existing ones.
“This trend suggests a cautious approach to personal finance and housing decisions is more crucial than ever.”
Rohit Kohli, director at The Mortgage Stop:
“Another Monday morning with bad news for borrowers as Santander increases their rates. Undoubtedly other lenders will follow as they look to protect margins.
“What is concerning is the lack of ideas or capability from either the government or the Bank of England to any thing to address the continued crisis for those with mortgages or wanting to buy.
“The sooner we get a General Election the better.”
