Santander has announced a series of mortgage rate adjustments set to take effect on Friday, March 28, impacting both new and existing customers.
The changes include reductions for most fixed rates in the home mover and first-time buyer (FTB) ranges, though some 5-year fixed rates will see an increase.
Additionally, the existing 95% loan-to-value (LTV) 2-year tracker rate for home movers will be lowered.
However, selected 2- and 5-year fixed rates for remortgaging will rise, while large loan rates remain unchanged.
Buy-to-let (BTL) customers will also see adjustments, with reductions in selected 2-year fixed rates for both purchase and remortgage options.
In the product transfer range, Santander is set to increase some residential fixed rates while reducing certain BTL fixed rates.
Tracker rates, however, will remain unaffected.
For first-time buyers, all 75% to 95% LTV 2-year fixed rates will be reduced by up to 0.08%, while the 75% LTV 3-year fixed rate with a £999 fee will drop by 0.05%.
Similarly, the new-build 75% LTV 3-year fixed rate with the same fee will also be reduced by 0.05%.
Home movers will benefit from reductions across most 75% to 95% LTV 2-year fixed rates, with cuts of up to 0.15%.
Selected 90% to 95% LTV 5-year fixed rates will also see a decrease of up to 0.07%.
BTL customers looking to purchase will find all 60% to 75% LTV 2-year fixed rates lowered by up to 0.10%, while those seeking remortgages will see a reduction of 0.05% on all 60% LTV 2-year fixed rates.
Not all rates are decreasing, as some fixed-rate products are set to rise.
Selected FTB 5-year fixed rates for 60% to 90% LTV will increase by up to 0.09%.
Home movers will see selected 60% LTV 5-year fixed rates increase by 0.06%, while residential remortgages will experience increases of up to 0.08% across selected 2-year fixed rates at 60% LTV and all 5-year fixed rates at 60% to 90% LTV.
A notable change in Santander’s tracker mortgage range includes a reduction for existing home movers, with the 95% LTV 2-year tracker (no fee) decreasing by 0.08%.
For customers opting for product transfers, Santander is lowering all 60% LTV 2-year fixed BTL rates by 0.05%.
However, some residential fixed rates will increase, with selected 60% to 90% LTV 2-, 5-, and 7-year fixed rates rising by up to 0.08%.
Santander has explained that for customers who have not yet accepted their product transfer offer, a new product can be selected via the online mortgage transfer service. A fresh offer will be issued accordingly.
Those who have already accepted a new deal can still switch to another option or cancel their current arrangement, but this must be done at least 14 days before the new deal starts.
Santander has also issued a reminder to brokers and customers that, since 4th March, separate product ranges exist for FTB and home movers.
When one applicant is an FTB and the other is a home mover, the home mover should be entered as applicant one in the Introducer Internet system.
This ensures the correct product range appears for selection.
From tomorrow, 28th March, brokers will be able to access Santander’s online mortgage transfer service through Introducer Internet to view their clients’ available product transfer rates, which will not be listed on sourcing systems.
To ensure applications are processed under the current product range, brokers must submit all new business and product transfer applications by 10pm today, Thursday 27th March.
