Santander offering two and three-year fixed rate mortgages from 4.94%
Tags: Residential mortgages
Quick Summary
Santander is offering competitive two and three-year fixed-rate mortgages below 5%, alongside a five-year fixed deal priced just over 4.90%. Despite increasing some mortgage rates, the bank remains an option for borrowers searching for cheaper fixed-rate deals.
To qualify for Santander's lowest rates, applicants typically need a 40% deposit or equivalent property equity. The bank's lowest rates are available for mortgages between £6,000 to £2 million, subject to affordability and credit checks.
Santander has also increased selected mortgage rates for existing customers, highlighting the importance of comparing deals before remortgaging or transferring to a new product.
Trinity Financial's mortgage brokers can compare Santander's latest fixed and tracker rates with deals from Halifax, Nationwide, HSBC and other leading lenders to help first-time buyers, home movers and existing homeowners secure competitively priced mortgages.
Contact Trinity Financial for expert mortgage advice.
Santander mortgage broker London.
Santander has increased a wide range of interest rates available to existing mortgage customers while making a mixture of increases and reductions across its new business range.
The largest increase is on a three-year fixed product transfer for those with 25% equity in their home, which has risen by 0.21% from 4.97% to 5.18%.
Although Santander has raised many of its mortgage rates, the bank still offers two- and three-year fixes priced just below 5% and a five-year fix priced just over 4.90%.
Applicants must have a 40% deposit to qualify and can borrow between £6,000 and £2 million. A successful credit check is required at the point of application. Please note, these rates are likely to be withdrawn at very short notice.
Aaron Strutt, product director at Trinity Financial, says: "The mortgage market has calmed down over the past two weeks, with fewer rate changes and a few more lenders offering fixed-rate mortgages below 5% again.
"The latest reductions are encouraging, particularly after September's sharp increases. However, higher wholesale funding costs, uncertainty over future Bank of England base rate movements and the ongoing conflict involving Iran continue to affect mortgage pricing.
"Competition between lenders could lead to further reductions, particularly if housing market activity remains subdued."
Representative Example: A capital and interest mortgage of £500,000 payable over 30 years, initially on a 4.94% fixed rate until 02/02/2030 and then on a standard variable rate of 6.50% for the remaining 27 years would require 38 payments of £2,668.82 followed by 322 monthly repayments of £3,125.77. The total amount repayable would be £1,108,322.85.
This amount is illustrative and may vary, made up of the loan amount, plus interest (£608,864.89) and £999 (product fee), £225 (final repayment charge), £25 (completion fee). The overall cost for comparison is a representative 6.3% APRC.
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The mortgage market moves fast — and the right advice can make a significant difference to the rate and deal you secure. Get in touch with our team to discuss your options.
Call Trinity Financial on 020 7016 0790 to secure a fixed or tracker rate mortgage, book a consultation, or use our appointment calendar
The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.
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