by Mark Johnston
The Spanish banking giant Santander have just reduced some of their mortgage range by up to a quarter of a percent.
Their five year fixed rate mortgage which is available to all purchases has been cut by up to 0.26 percent. The revised rates offer a five year mortgage at 4.49 percent. The loan to value is 70% with a £995 arrangement fee. They also offer a version with a slightly better loan to value (LTV) of 75 percent which means borrowers need a 25 percent deposit.
Phil Cliff, Santander’s director of mortgages said: “Santander is committed to offering competitive deals and we continue to offer a variety of products to meet borrowers’ needs. This is why we have further improved our deals by cutting the rates on our existing five-year fixes at 70 and 75 per cent LTV. And for borrowers seeking a more short term deal, our new, market leading, two-year fee free tracker is an excellent option.”
Santander is confident that they can offer their existing customers a very competitive deal. They regularly review their products and at times reduce their rates like they have done with these products. They also offer special offers to attract existing mortgage holders who’s deals are coming to an end.
The bank doesn’t charge legal or survey fees to their customers looking for a deal after their current deal has come to an end and are looking for a more competitive products rather than their standard variable rate (SVR). They also make things really easy by not asking for new forms to be completed or signed and dont even ask for a new direct debit to be set up. Those looking for a new deal can book current mortgage rates up to six months in advance of their current deal ending and even allow home owners to borrow more money when they switch to the new mortgage.
Santander’s two year fixed rate mortgage for home movers and home buyers is 3.09 percent, the overall cost for comparison is 4.2 percent APR. At the end of the two year mortgage the loan changes to the banks standard variable rate (SVR) of 4.24 percent. The maximum loan to value (LTV) is 70 percent with a £495 booking fee.
First time buyers looking to get on the property market with a smallish deposit can take advantage of Santander’s three year fixed rate mortgage at 5.99 percent. The loan to value is a reasonable 90 percent which means borrowers only need to find a 15 percent deposit. Those looking to borrow £100,000 would only need a £10,000 deposit to secure funding on their new house. First time buyers can only borrow up to £250,000 but this is more than enough with falling house prices and an average cost of a UK house at around £160,000
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