Santander UK has introduced a sub-4% mortgage, which it says will make it the first high street mortgage lender to do so in 2025.
From Thursday 13th February, eligible customers will be able to apply for one of four new products as the lender launches a range of 2-year and 5-year fixed 3.99% residential purchase and remortgage rates, at 60% loan-to-value (LTV).
The lender has also announced reductions of up to 0.40% on more than 80 other mortgages products, also live from Thursday.
The raft of rate cuts impacts residential purchases, remortgages, new-build purchases, as well as buy-to-let purchases and remortgages.
In addition to the new 3.99% residential products, the lender is introducing a new range of 65% LTV options on Buy-to-let (BTL) for purchase and remortgage customers, giving them more choice between 60% and 75% LTV.
Examples of new residential products and rates include: a residential purchase 60% LTV 2-year and 5-year fixed rate, 3.99% with a £1,999 fee; a residential remortgage – 60% LTV 2-year and 5-year fixed rate, 3.99% with a £1,749 fee
For BTL purchase at 65% LTV, the new range includes a 2-year fixed rate, 4.35% with a £1,749 fee or 4.89% with no fee; and a 5-year fixed rate, 4.32% with a £1,749 fee or 4.59% with no fee.
For BTL remortgage at 65% LTV: a 2-year fixed rate, 4.35% with a £1,749 fee or 4.89% with no fee; and a 5-year fixed rate, 4.25% with a £1,749 fee or 4.52% with no fee.
David Morris, head of homes at Santander UK, said: “We’re delighted to launch a range of new products, along with rate cuts on our existing range, that will make a difference to customers across every stage of the home-buying journey.
“From prospective buyers looking to get on the ladder for the first time, to landlords in the buy-to-let market, we’re proud to offer competitive products that help our customers reduce the overall cost of their mortgage.”
