Santander offering competitively priced two and five-year fixed rate mortgages

by Aaron Strutt

Jun 07 2023

Santander for Intermediaries offers some of the most competitively priced fixed-rate mortgages. 

As these rates are towards the top of the mortgage best buy tables and with the scale of rate changes we have seen over the last two weeks, Santander's lowest two and five-year fixes are unlikely to last much longer.

Santander's two-year fix is priced at 4.74% and it is available for property purchases. The remortgage rate is 0.01% lower. These mortgages are fixed until 02 September 2025, and applicants will need a 40% deposit to qualify. The maximum loan is £1.5 million.  

After the fixed period, the mortgage reverts to 3.25% over the Bank of England base rate (currently 4.5%), and £999 arrangement fees apply.    

Aaron Strutt, product director at Trinity Financial, says: "Santander may have to reprice its mortgages soon to have similar rates to its competitors. The bank's five-year fixes are approximately 0.35% cheaper than its two-year fixes which means more borrowers will be tempted in for longer."  

Representative example: A capital and interest mortgage of £300,000 payable over 30 years, initially on a fixed rate basis until 02 September 2025 at 4.74% and then on a Bank of England base rate tracker (BoE plus 3.25%) currently 4.50% for the remaining 28 years, 4.74% would require 25 monthly repayments of £1,563.13 followed by 335 payments of £2,118.80. The total amount repayable would be £750,285 made up of the loan amount, plus interest (£448,940.92) and £999 (product fee), £225 (final repayment charge), £35 (completion fee). The overall cost for comparison is 7.5% APRC representative.      

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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