Santander launches 4.64% five-year fix for mortgages up to £1.5 million

Aaron Strutt Image

Santander for Intermediaries has announced it is lowering the price of many of its new business and existing customer rates by up to 0.56%. 

Santander's most competitively priced rate is a five-year fix priced at 4.64%, and it is available for property purchases. The mortgage is locked in until 02 September 2029, and applicants will need a 40% deposit to qualify. The maximum loan is £1.5 million, and it has a £999 arrangement fee.  

After the fixed period, the mortgage reverts to 3.25% over the Bank of England base rate (currently 5.25%), and £999 arrangement fees apply.    

Aaron Strutt, product director at Trinity Financial, says: "The most competitively priced rates in the market tend to be five-year fixes although there are some sub-5% three, seven and ten-year fixes.

"Many of our clients are taking five-year deals, but they are also opting for two-year fixes and tracker rates without early repayment charges."  

Representative example: A capital and interest mortgage of £300,000 payable over 30 years, initially on a fixed rate basis until 02 September 2029 at 4.64% and then on a Bank of England base rate tracker (BoE plus 3.25%) currently 5.25% for the remaining 25 years. The 4.74% rate would require 63 monthly repayments of £2,572.97 followed by 297 payments of £3,665.97. The total amount repayable would be £1,252,298.95 made up of the loan amount, plus interest (£754,401.27) and £999 (product fee), £225 (final repayment charge), £35 (completion fee). The overall cost for comparison is 7.1% APRC representative.    

Does Santander offer generous income multiples? 

Santander is known within the mortgage industry for offering some generous income multiples, especially for borrowers earning between £45,000 and £99,999.

Higher-earning applicants with a salary over £100,000 can borrow up to 5.5x single or joint salaries and also get access to an excellent interest-only policy. 

  Capital and Interest Interest Only
Combined income for all applicants Loan to value (LTV)
75% or less Over 75% to 85% Over 85% 75% or less Over 75%
Less than £45,000  4.45x 4.45x 4.45x 4.45x 4.45x
£45,000 to £99,999 5.00x 5.00x 4.45x 4.45x 4.45x
£100,000 or more 5.50x 5.00x 4.45x 5.50x 5.00x

Source: Santander for Intermediaries 

Call Trinity Financial on 020 7016 0790 to secure a mortgage or book a consultation 

The information contained within was correct at the time of publication but is subject to change

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