From tomorrow, Friday 3rd May, Santander is set to hike fixed rates for the second time in the space of a week, with selected fixed deals increasing by up to 0.26%.
In its new business range, selected residential fixed rates will be increasing by between 0.20% and 0.26% for purchases and remortgages.
In addition, all of the lender’s new business buy-to-let (BTL) fixed rates will be increasing by between 0.05% and 0.22%.
A Santander spokesperson said: “We continually review our rates based on a number of factors, such as wider market conditions.
“Existing Santander customers looking to switch products are not impacted by these changes and we continue to offer a range of competitive mortgage rates, with 5-year deals starting from 4.47% and 2-year deals starting from 4.88%.”
Newspage asked mortgage brokers for their views.
Reaction:
Stephen Perkins, managing director at Yellow Brick Mortgages:
“The current market feels like a chaotic game of pass the parcel, where lenders are scrambling to avoid holding the lowest rate when the music stops.
“With rates increasing multiple times within the same week, advising clients becomes a real challenge in this ever-shifting landscape.”
Katy Eatenton, mortgage and protection specialist at Lifetime Wealth Management:
“While it’s frustrating that Santander’s pricing wasn’t accurate on Monday, they’ve at least granted brokers and borrowers until close of business tomorrow before implementing rate increases.
“However, the promising start to the year feels like a distant memory, and it seems unlikely that rate reductions will be coming anytime soon.”
Dariusz Karpowicz, director at Albion Financial Advice:
“Santander’s second rate hike in a week reflects the broader market’s reaction to rising Swap rates.
“As we approach summer, this trend hints at a looming tightening of lending, presenting hurdles for borrowers.
“Urgent Government intervention is warranted to aid current mortgage holders and first-time buyers, especially concerning affordability.
“Without decisive action, we face potential repercussions for the UK economy and property market.
“Implementing measures now can alleviate financial strain on households and foster a more robust market environment.”
Ranald Mitchell, director at Charwin Private Clients:
“Santander hiking rates for the second time in a week is a good barometer for market sentiment and mortgage borrowers are going to get burned badly if this trend continues.”
Gary Bush, financial adviser at MortgageShop.com:
“It’s getting mighty sticky discussing mortgages with clients after the seemingly endless rate increases of this week!
“All we can hope/pray for is the Bank of England to save UK mortgage account holders with a base rate cut in the upcoming monetary policy meeting as the mortgage rate mood music turns very sour.”
Rohit Kohli, director at The Mortgage Stop:
“It’s going from bad to worse for borrowers, as lenders now scramble to avoid being the best-priced on the market.
“This feels like the period immediately after post Truss debacle scrambling to avoid new business as gilts and swaps increase.
“All the positive gains from the start of the year have now seem a distant memory.”
Amit Patel, adviser at Trinity Finance:
“What a start to the month of May, rate hike after rate hike, with no end in sight as swap rates continue to be volatile.
“Rishi Sunak has his priorities all wrong, instead of working on his crude, inhumane Rwanda policy he should be addressing the issue in the financial markets before markets go into freefall again.”
Aaron Strutt, product and communications director at Trinity Financial:
“Banks and building societies are definitely not shutting up shop for the summer.
“They want to issue more mortgages, but these rate hikes will not help.
“Some of the lenders have announced their gross lending figures, and they are significantly down.
“Rates need to improve rather than go up if they want to get the property market moving again.”
