Santander is making sweeping cuts of up to 17 basis points to fixed rates across its new business and product transfer ranges, including buy-to-let and residential deals.
The bank is lowering rates tomorrow, following price cut announcements by other major lenders Halifax, Lloyds and HSBC in recent days.
Santander’s biggest cuts include a two-year fixed rate for home movers at 60% loan-to-value, with a £1,999 fee and £250 cashback, which will fall by 17bps to 4.43%.
A free-free five-year fixed for first-time buyers at 85% LTV with £250 cashback will also drop by the same margin to 4.81%.
They are among scores of deals to be reduced tomorrow, many by more than 10bps.
Trinity Financial product and communications director Aaron Strutt says: “More of the big lenders have been lowering mortgage rates to attract borrowers and bring a bit more life into the property market over the last few days.
“Barclays, Coventry Building Society, Halifax, HSBC, NatWest and now Santander have all improved their pricing as competition ramps up to attract home buyers and the £154bn worth of remortgaging home owners coming up for renewal between July and December this year.
“Two-year fixed rate mortgages start from 4.35% and there are two banks offering sub-4% tracker rates.
“There are also five-year fixes starting from 4.44%.
“While some of the price reductions have not been huge, at least rates are heading in the right direction and the gap between two and five year fixes is getting smaller.
“These latest rate changes show how keen the lenders are to write more mortgage business, especially as many borrowers have been holding off because of the higher monthly repayments.
“We are back at the stage where there are more sub-4.5% deals to choose from which is good news for borrowers.
“Santander’s lowest two-year fix seems to be coming down to 4.43% which is not far off market leading.”
