Santander for intermediaries will lift all residential and buy-to-let fixed-rate loans across its new business range by up to 34 basis points tomorrow (21 February).
The high street lender adds that the move will also include rises for new build and large loan exclusives for residential clients, as well as selected residential and landlord product transfer fixes.
The rise leaves HSBC as the only mainstream lender offering sub-4% residential loans, say brokers.
Santander’s new business changes cover:
- All standard residential fixes rise by between 23bps and 34bps
- All residential new build exclusive fixes rise by between 25bps and 34bps
- All residential large loan exclusive fixes rise by between 23bps and 33bps
- All BTL fixes rise by between 23bps and 33bps
Its product transfer changes cover:
- Selected residential fixes rise by between 5bps and 20bps
- Selected BTL fixed rates rise by between 5bps and 15bps
John Charcol head of marketing Nicholas Mendes says: “The group of lenders offering interest rates below 4% has now diminished to just one, as Santander provides notice, they are withdrawing by the end of play today.
“HSBC stands as the sole remaining high street lender providing a fixed rate below 4%. However, in light of Santander’s decision, it is anticipated that HSBC will soon revise its rates, particularly considering that the five-year money rate is slightly below 4%.
“Initial market expectations factored in multiple bank rate reductions throughout the year, commencing in March.
“However, recent data, both domestic and international, particularly from the US, suggests that such reductions may not materialise until at least June.
