Santander putting its cheap rates up on Tuesday (17th March) but giving borrowers this weekend and Monday to secure its sub-3.80% mortgages
Tags: Remortgages, Residential mortgages
Quick Summary
Santander is increasing many of its super-cheap mortgage rates on Tuesday, but borrowers still have this weekend and Monday to lock in its sub-3.80% fixed deals. Trinity Financial says Santander’s two-year fixes remain available from 3.80% until then, despite wider rate rises across the market. Halifax, Nationwide, Barclays and NatWest have also raised rates, although a handful of sub-4% deals remain. Trinity expects more increases soon as lenders react to continued market instability. The article stresses that borrowers should move quickly, because competitive products can disappear overnight and even short delays may mean paying more. Aaron Strutt advises borrowers to choose a deal that fits their short- or long-term plans, whether that is a fixed rate, tracker or switch-to-fix option, while low rates are still available in the market.
Halifax, Santander and Nationwide are the latest big lenders to increase their mortgage rates, but surprisingly, there are still some sub-4% fixes left.
Santander has just announced it is raising its best-buy two-year fixed rates, but they are still available from 3.80% until Tuesday, 17th March. This gives Trinity Financial's brokers just about enough time to secure some very cheap rates for our clients, provided they give us the information we need quickly.
Nationwide for Intermediaries still offers two-year fixes at 3.85% and five-year fixes from 4.10%. Barclays has two-year fixes from 4.10%, and NatWest has one sub-4% two-year fix.
Santander has been offering many of the lowest rates in the market for a while, so these price hikes were expected. Even with the 0.3% rate rise, Santander’s fixes will still be reasonably priced given everything going on at the moment, but Nationwide will be offering standout best-buy rates and will be busier.
That, in turn, means Nationwide will have to raise its prices sooner rather than later. It seems like the remaining sub-4% fixes will be pulled next week. It is good to see Santander give borrowers the weekend and Monday to submit applications, because many other lenders give very little notice before pulling their mortgages.
What do borrowers need to know, and what should they do?
Aaron Strutt, product director at Trinity Financial, says: "It’s the same advice as usual, really, just with more urgency. Get the best fixed rate based on your short- or long-term goals, or take a flexible tracker rate, or a switch-to-fix if you are not sure whether you will move or your situation will change in the near term.
"More rate hikes are expected until markets regain stability and confidence, and this is only likely to happen when oil tankers can pass through the Strait of Hormuz without the risk of attack."
Does holding off choosing a mortgage rate for a day or two really make a difference?
For borrowers, the practical effect is simple enough: the cheapest deals can disappear overnight, which makes it important to act quickly if you need a mortgage. If you take too long to send your forms back to your broker, put off choosing a rate, or delay checking the market, you could end up paying a significantly higher rate.
Speak to a Trinity Financial adviser today
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.
Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage
Get started today
Speak to one of our mortgage experts. Book an appointment to come and see us or request one of our experts to call you.
