Santander UK has slashed rates across an impressive array of more than 70 mortgage products, simultaneously introducing a tempting £250 cashback incentive on low deposit deals.
In a bid to appeal more to homeowners and those seeking to remortgage, the bank has made cuts on selected fixed homeowner purchase and remortgage ranges, knocking up to 0.23 percentage points off their rates.
The offer is sweetened with a £250 cashback on residential mortgages for loans at 85% LTV (loan-to-value) or higher. Additional deductions have been made by Santander on some buy-to-let range deals, decreasing by up to 0.16 percentage points.
Standout new rates include a five-year fixed remortgage deal pitched at a rate of 4.30% with a £999 fee for borrowers with a 25% deposit, reflecting a reduction of 0.23 percentage points.
There’s also a two-year fixed house purchase mortgage at a rate of 4.69% with a £999 fee for those with a 15% deposit, now trimmed down by 0.07 percentage points and enriched with an added £250 cashback.
Current data from Moneyfacts, a financial information provider, indicates that the average two-year fixed homeowner mortgage rate stands at 5.47% with the five-year fixed rate averaging at 5.25%.
Interestingly, this comes in the wake of two base rate declines from the Bank of England earlier this year, amidst mortgage rates edging upwards due to influences from swap rates, which are instrumental in lenders’ loan pricing strategies.
Graham Sellar, Santander’s Head of Intermediary Channels, said: “We’re pleased to deliver this bumper range of rate cuts across more than 70 products, alongside adding cashback for those looking at higher LTVs.”
Finance expert Rachel Springall, from Moneyfactscompare.co.uk, said: “It’s good to see a prominent lender making the decision to cut fixed mortgages and the two-year fixed deals from Santander are particularly competitive. Those borrowers who need a mortgage at a higher loan-to-value may be pleased to see a cashback incentive launched, however any deal should be weighed up by its overall cost.
“Santander’s two-year fixed mortgage at 85% loan-to-value has an impressive cost-saving package of a free valuation and £250 cashback. The deal does charge a fee of £999, but the fixed rate is a competitive 4.69%. It will be good to see if more prominent lenders decide to cut their fixed-rate mortgages in the weeks ahead in response.”
