Santander launches 4.64% five-year fix for mortgages up to £1.5 million
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
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The information contained within was correct at the time of publication but is subject to change
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