Santander is increasing rates on its 85 per cent loan-to-value products tomorrow, while at the same time cutting the cost of some of its lower LTV deals.

The lender is making reductions of up to 15 basis points on remortgage deals at 60 and 75 per cent LTV.

The following remortgage-only rates are being cut:

• 60 per cent LTV two-year fixed rate at 1.29 per cent with £649 fee – reduced by 0.05 percentage points
• 60 per cent LTV two-year fixed rate at 1.54 per cent with £0 fee – reduced by 0.1 percentage points
• 75 per cent LTV two-year fixed rate at 1.39 per cent with £649 fee – reduced by 0.05 percentage points.
• 75 per cent LTV two-year fixed rate at 1.74 per cent with £0 fee – reduced by 0.15 percentage points
• 60 per cent LTV three-year fixed rate at 1.6 per cent with £0 fee – reduced by 0.10 percentage points
• 75 per cent LTV three-year fixed rate at 1.74 per cent with £0 fee – reduced by 0.1 percentage points
• 60 per cent LTV five-year fixed rate at 1.44 per cent with £649 fee – reduced by 0.05 percentage points
• 60 per cent LTV five-year fixed rate at 1.64 per cent with £0 fee – reduced by 0.10 percentage points
• 75 per cent LTV five-year fixed rate at 1.79 per cent with £0 fee – reduced by 0.10 percentage points

The following 85 per cent LTV deals for purchase and remortgage are all increasing by 0.05 percentage points:

• Two-year fixed rate at 1.69 per cent with £649 fee
• Two-year fixed rate at 2.04 per cent with £0 fee
• Five-year fixed rate at 2.04 per cent with £649 fee
• Five-year fixed rate at 2.20 per cent with £0 fee