Santander topping mortgage tables with 3.55% two-year fix and cheap three and five-year rates

by Aaron Strutt

Nov 18 2025

Santander for Intermediaries has launched a range of cheap mortgages available from 3.55%!

The new 3.55% two-year fix is available to borrowers moving home with a 40% deposit, and it has a £999 arrangement fee. Santander's new three-year fix is priced at around 3.60%, and the five-year fix is priced at around 3.75%. These rates also have £999 fees, require a 40% deposit, and all these products are available for mortgages of up to £3 million. 

Which lenders have the next lowest rates? Nationwide and Barclays have slightly more expensive but well-priced two and five-year fixes.

Aaron Strutt, product director at Trinity Financial, says: "Even though the Bank of England base rate is not at 3.5% yet, as many expected, it seems like the lenders are keen to offer the cheapest possible mortgages to get as close to this benchmark price before Christmas. The best rates are still available for those looking to move home. The cost of funding has been declining, and no doubt many lenders are trimming their profit margins by offering better rates.

"Mortgage lending criteria is changing so much at the moment that rates are only playing a small part for many borrowers seeking income stretches, lower deposit mortgages or flexible products without exit fees. If you can get a mortgage through one of the major lenders, you will probably get the most competitive rates. The big banks are taking on the specialist lenders who normally issue mortgages to those with more unusual situations. There isn’t just a mortgage price war going on; there is also a mortgage criteria fight as well."

Representative example: A capital and interest Santander mortgage of £500,000 payable over 30 years, initially on a 3.55% fixed rate for 02 March 2023 and then on a variable rate of 6.75% for the remaining 28 years, would require 26 monthly repayments of £2,261.90 followed by 334 monthly repayments of £3,186.11. The total amount repayable would be £1,123,379.89.

This amount is illustrative and may vary, made up of the loan amount, plus interest (£625,438.98) and £999 (product fee), £225 (final repayment charge), £25 (completion fee). The overall cost for comparison is 6.3% APRC representative.

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