Santander will withdraw its 3.99% 5-year fixed rates for new business and product transfers at 10pm on 21st February 2025.
This decision comes after a recent rise in 5-year market swap rates.
In line with their broker pledges, Santander is ensuring a minimum of 24 hours’ notice before the withdrawal.
Santander’s withdrawal affects several products, including the 60% loan-to-value (LTV) 5-year fixed rate at 3.99% with a £1,749 fee for remortgages and the 60% LTV 5-year fixed rate at 3.99% with a £1,999 fee for purchases.
For product transfers, the withdrawal applies to 60% and 75% LTV 5-year fixed rates at 3.99% with a £1,749 fee.
Despite this, Santander confirmed that its 2-year fixed rate at 3.99% will remain unchanged.
Santander will update its latest mortgage rates page with full details of both the new business and product transfer ranges on 22 February.
David Hollingworth, associate director at L&C Mortgages, said: “Yesterday’s news of the increase in the rate of inflation meant that some of the lowest fixed mortgage rates on the market could be under threat.
“Although the movement in swap rates, which are a key indicator for fixed mortgage rates, has not been enormous it does look to be enough to put some of the very lowest rates in peril.
“It’s not a need for panic but borrowers that have been considering a new deal may want to reach a decision sooner rather than later in case of more movement in rates.”
Hollingworth added: “The constant shift in mortgage rates can be frustrating but the good news is that the longer-term expectation for Bank of England base rate is that it will continue downwards as the year progresses.
“What we don’t know is when it will next fall and how far.”
