Santander is increasing rates on its 85 per cent loan-to-value products by 20 basis points tomorrow.

The lender emailed brokers to warn them that it will be putting up prices on its two and five-year fixed rate deals for borrowers with a 15 per cent deposit.

Its two-year fix at 85 per cent LTV will increase from 2.79 per cent to 2.99 per cent with a £999 fee.

Its five-year fix at 85 per cent LTV will rise from 2.94 per cent to 3.14 per cent with a £999 fee.

In the same LTV tier, Santander will also be introducing a new three-year fix for purchase and remortgage priced at 2.99 per cent with a £999 fee.