Santander offering 1.25% fixed rate for purchases and remortgages up to £1.5 million
PLEASE NOTE THIS RATE HAS INCREASED BY 0.19%.
Santander for Intermediaries is offering a particularly cheap two-year fixed purchase and remortgage rate for larger mortgage loans.
The 1.25% mortgage is fixed until the 02 May 2020. After the fixed period, it will revert to the lender's variable rate of 3.75%. The overall cost for comparison is 3.36% APRC representative.
It has a £1,499 arrangement fee and applicants will need a 25% deposit to qualify. Early repayment charges apply for the fixed rate period and the mortgage is available for loans between £250,000 and £1.5 million.
Aaron Strutt, product director at Trinity Financial, says: “This 1.25% rate is actually one of the lowest rates the bank offers even though it has a large maximum loan size.”
Santander will typically pay for the property valuation and legal fees when you remortgage to them, it also offers interest-only to up to 50% loan-to-value. The bank considers part and part applications up to 75% loan-to-value providing the interest-only amount is not greater than 50% and the remainder is on a capital and interest basis.
Representative example: A mortgage of £500,000 payable over 25 years, initially on a fixed rate for two years at 1.25% and then on a variable rate of 3.75% for the remaining 26 years, would require 26 monthly repayments of £1,941.49 followed by 274 monthly repayments of £2,515.41. The total amount repayable would be £741,586.08 made up of the loan amount, plus interest (£239,701.08) and fees of £1,499. The overall cost for comparison is 3.36% APRC representative.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
To secure a larger mortgage loans call Trinity on 020 7016 0790.
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