Santander for Intermediaries has lowered the cost of its large loan mortgages between £250,000 and £3 million.
The Spanish bank cut its two-year fix from 1.94% to 1.74% for applicants with a 30% deposit. The overall cost for comparison is 4.1% APR.
The five-year fix was lowered by 0.5% to an impressive 2.09%. Borrowers will need a 40% deposit to qualify, and the overall cost for comparison is 2.1% APR.
After the fixed rate period, the mortgage reverts to the lender’s standard variable rate, which is currently 4.49%. Early repayment charges apply during the fixed rate periods.
Santander’s larger mortgages are available for property purchases and remortgages, and they have £1,995 arrangement fees.
Aaron Strutt, product director at Trinity Financial, says: “Santander has a range of maximum loan sizes on its mortgages, typically between £550,000 and £1 million. This means you should make sure you secure the most suitable rate and arrangement fee, as they range depending on the size of your deposit or the amount of equity in your property.”
Free valuation for property purchases and remortgages
If you are buying a property or remortgaging to raise additional funds, Santander will provide a free basic valuation providing the property is not worth more than £2.5 million. The bank will also pay £250 cash back for purchases and pay for the legal fees when you remortgage.
High street lenders vs private banks
If you are looking for a large mortgage loan, you have a choice between the high street lenders and private banks. It is often cheaper to secure mortgages from the high street.
“For clients with relatively straightforward financial circumstances, we approach the specialist large loan teams at the high street lenders. Incredibly some of then are offering standard rates for £5 million plus mortgages with £999 arrangement fees.
If your income is more complicated or you have investment portfolios, or you require cross charges against other properties, it is better to approach the private banks.
For help to secure a larger mortgage loan, call Trinity Financial on 020 7016 0790.