Looking for a £500,000+ mortgage? Santander has a market leading two-year fix priced at just over 3.5%
Quick Summary
Santander is about to launch a market-leading two-year fixed rate mortgage priced just over 3.5% targeting borrowers looking for mortgages over £500,000 and up to £2 million. The bank is offering many of the most competitively priced two, three and five-year fixes, especially for borrowers with larger deposits.
Santander has lowered its residential and buy-to-let fixed rates across new business and product transfer ranges by up to 0.15%, with rates now starting from just over 3.50%.
The lender’s current lowest rate of just over 3.50% means there has been a fall of 0.56% in rates from 1 January 2025 when the bank’s lowest rate was 4.07%.
For home movers, Santander has launched new 40% and 25% deposit two and five-year fixed products starting from just over 3.50% with a £1,999 fee. These have a minimum loan size of £500,000 and up to £2 million.
Santander for Intermediaries head Graham Sellar says: “2025 has been the year of the buyer, with rate reductions and affordability improvements helping more buyers take that first step onto or move up the property ladder.”
“We’re pleased that our final rate change of 2025 continues this positive trend for buyers with reductions across the board and our lowest on-sale rate of the year to support buyers into January with a new year, new home hunt.”
More lenders are lowering pricing as average fixed rates get cheaper
The mortgage price war is still going on, with NatWest and Barclays announcing fixed-rate priced reductions this morning (8/12/2025).
Average two- and five-year fixed mortgage rates fell month-on-month by notable margins, now both at their lowest levels since the start of September 2022, according to Moneyfacts.
The latest data shows that average mortgage rates on two- and five-year fixed deals fell by 0.08% and 0.10%, to 4.86% and 4.91% respectively, both now at their lowest points since September 2022.
It is the first time the average five-year fixed rate has dropped below 5% since May 2023.
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