Santander for intermediaries will cut most new business fixed-rate loans by up to 28 basis points and selected tracker rates by up to 34bps tomorrow (21 March), which brokers hope will spur further cuts by lenders.
The broker-only arm of the high street bank adds that it will add a five-year purchase fixed rate 60% loan-to-value product at 3.99%, with a £999 fee. At the same time, its 60% LTV five-year fixed-rate offer with no fee will be withdrawn.
For product transfers, selected residential fixed-rate loans will be reduced by up to 11bps.
There is no change to any buy-to-let rates.
Highlights of new business residential purchase cuts include:
- A 60% LTV two-year fixed-rate loan at 4.64%, with no fee, reduced by 25 bps
- A 75% LTV five-year fixed-rate deal at 4.15%, with no fee, reduced by 28bps
- And a 95% LTV two-year tracker rate at 6.15%, with no fee — for loyal movers only — reduced by 34bps
Residential remortgage reductions include a 90% LTV two-year fixed-rate deal at 5.09%, with a £999 fee, that will be cut by 11bps.
Highlights of new build cuts include:
- A 60% LTV two-and-a-half year fixed-rate offer at 4.64%, with no fee, reduced by 25bps
- A 75% LTV two-and-a-half year fixed-rate loan at 4.69%, with no fee, reduced by 25bps
- And an 85% LTV, two-and-a-half year fixed-rate deal at 4.89%, with no fee, reduced by 26bps
The lender says that its product transfer rates are tailored to each borrower and cannot be found on sourcing systems.
Brokers should log on to its online mortgage transfer service in Introducer Internet to view a choice of rates for clients. But advisers can use an estimated LTV to review what rates are available in the product transfer rate bulletin in its latest rates page from tomorrow.
It adds that completion deadlines have been rolled on to 5 August for product transfers, 29 September for purchases and 6 October for remortgages.
Homes at Santander chief operating officer Aaron Shinwell says: “We are working hard to help customers right across the mortgage market, whether buying their first home, moving house or remortgaging.
“By reducing rates in a range of LTV brackets and across two-, three- and five-year fixed deals we are delivering better value for a wide range of customers.”
Brokers hope the move by Santander comes ahead of the base rate, currently at 4%, remaining unchanged at the next Bank of England Monetary Policy Committee meeting on Thursday.
Forecasters had expected the rate to rise, but they now say bank failures, forced mergers and industry bailouts in the US, the UK and Switzerland over the last two weeks due to global interest rate rises, may pause this decision.
SelfEmployedMortgageHub.com director Graham Cox says: “UK swap rates, which lenders’ fixed-rated deals are based on, have been falling for a week or two now.
“And they continue to fall this morning as the expectation is, given the current market conditions, central banks will apply the brakes on base rate rises. This is excellent news for mortgage borrowers.”
Harmony Financial Services director Imran Hussain adds: “I hope this is the start of a move in a positive direction from other lenders but I think a lot will also depend on the markets and what the Bank of England does with the base rate this week.”