Santander for Intermediaries is offering one of the cheapest five-year fixed-rate mortgages.
The rate is priced at 1.49% and it is fixed until 2 May 2025. Once the deal expires, it reverts to the lender’s 4% standard variable rate. The overall cost for comparison is 3.1% APRC representative.
There is a £999 arrangement fee, and applicants will need a 40% deposit to qualify. The maximum loan size is £1 million and if you are remortgaging to the bank there is a free property valuation and free legal fees.
Aaron Strutt, product director at Trinity Financial, says: “More of the lenders are offering sub-1.5% five-year fixes and they are available for property purchases and remortgages.
“If you are purchasing a property Santander’s five-year fix is the same price and there is a free basic property valuation.”
Santander is currently taking an average of nine days to produce a residential mortgage offer.
Call Trinity Financial on 020 7016 0790 to secure a fixed-rate mortgage
More of the lenders are telling us that borrowers are turning to longer-term rates and in some cases, up to 50% of the banks and building societies applications are for five-year fixes.
If you are thinking about taking a five-year fix, it is important to try to plan ahead and work out if it makes sense to lock in for such a long time. We regularly speak to clients whose personal or financial circumstances have changed and they have fixed rates that they can’t get out of.
Longer-term fixes tend to be popular with clients with families looking for payment security but lots of first-time buyers are taking them when a shorter-term mortgage or early repayment charge-free product maybe more suitable.