Santander for intermediaries has launched a sub-5% five-year fixed-rate deal for residential purchases — while cutting all residential and landlord fixed-rate offers across its new business and product transfer ranges.
The bank’s broker-only arm says its changes, which come to market tomorrow (26 September), cover:
New business
- New residential 60% loan-to-value five-year fixed-rate offers at 4.95%, with a £999 product fee, for house purchases
- New residential 60% LTV two-year fixed-rate deals at 5.43%, with a £999 product fee, for house purchases
- All standard residential fixed-rate products come down by between 3bps and 33bps
- All new build exclusive fixed-rate products come down by between 3bps and 23bps
- All residential large loan exclusive fixed-rate deals come down by between 47bps and 50bps
- All buy-to-let fixed-rate offers come down by between 26bps and 35bps
Product transfers
- All residential fixed-rate products come down by between 10bps and 36bps
- All BTL fixed-rate deals come down by between 5bps and 45bps
Santander is among a range of lenders that have offered sub-5% deals over the last two weeks, which includes Nationwide, Yorkshire Building Society and West One Loans.
The cuts come amid the Bank of England’s Monetary Policy Committee holding the base rate at 5.25% last week, in a narrow 5-to-4 vote, following its previous rise on 3 August.
Many economists expected a further 0.25% hike before the committee would consider how its previous 14 consecutive rate rises were feeding through the economy, as it battles inflation.
The cost of living unexpectedly slowed to 6.7% in the 12 months to August yesterday – down slightly from 6.8% in July.
