by Mark Johnston February 18, 2011
The banking giant Santander that took over a number of British high street banks during the height of the financial crisis, has launched a new market leading mortgage. The new mortgage which is topping many of the best buy tables is a two year 90% loan to value (LTV) mortgage. At the same time the bank which is calling itself the ‘Home of UK Mortgages’ has also reduced a number of their mortgage rates.
Their four year mortgage that has a 85% loan to value (LTV) was 5.84% and has been reduced to 5.69% with a fee of £495. Santander offer a homebuyer solution that means they offer free mortgage valuation and £250 cash back upon completion.
The Spanish bank is also launched a new two year fixed rate mortgage that has a 75% loan to value (LTV) at just 3.69%. Again, it’s a £495 fee and the home buyer solution or remortgage solution which offers free legal costs or the £250 cash back offer.
Recently the bank announced a move to support their customers in difficult times by reducing the fees on some of their mortgages. The move is to provide extra help for those looking to take out a mortgage at a time when spare income is being stretched due to the increase in VAT from 17.5% to 20%.
The mortgage fees have been reduced on a number of two year and five year fixed and tracker mortgages. The first is a 2.99% two year fixed mortgage with a loan to value of 70%, Santander has reduced the fee to just £795. Alongside this Santander has also reduced a two year tracker at 2.79% that has a loan to value of 75% with the same fee reduction to £795 saving up to £200.
They have also included a five year fixed rate mortgage at 4.59% in the reduction which has a 75% loan to value so a 30% deposit is required. This would work out around £45,000 on an average priced home of £150,000.
Phil Cliff, at Santander Mortgages said: “We’re always looking at ways we can help homebuyers. Moving home often results in additional expenses. Our new initiative of reducing fees on selected products by £200 will hopefully come as welcome news to those homebuyers looking to save money as they face the new VAT hikes.”
This is the latest in a line of rate cuts from the new high street bank that moved into the Uk market after purchasing a number of existing banks and building societies such as Abbey National.
Santander recently reduced their two year fixed rate mortgage by 0.16 percent which has a loan to value (LTV) of 75% meaning a £100,000 home would require a deposit of £25,000. The new rate works out at 3.89% with a very reasonable fee of £99.
At the same time they also reduced their 70% loan to value (LTV) product by 0.1 percent bringing the cost down to 3.15% for the 2 year term.
They also reduced one of their three year fixed rate mortgages by 0.08 percent to 3.79%. The loan has a 70% loan to value and a £995 fee.
Phil Cliff, Santander’s director of mortgages, said: “As the ‘Home of UK Mortgages’, we want to ensure we offer a range of highly competitive mortgages. As well as cutting rates by up to 0.16 per cent, we have also launched a new exclusive first-time buyer mortgage to support borrowers trying to buy their first home, demonstrating our commitment to supporting the UK housing market.”
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