by Mark Johnston
The Spanish banking giant Santander has announced a move to support this 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.”
Borrowers should also look out for Santander’s new three year fixed rate mortgage for first time buyers. It has a more manageable loan to value of 85% for a fixed rate of 5.69% and a £495 fee. All of Santatnder’s mortgages offer a re-mortgage deal which offers a free valuation together with a choice of either free legal services or £250 cashback.
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