by Mark Johnston
The rate war seems to be continuing as more high street lenders reduce their rates to attract new mortgage customers. The Spanish banking giant Santander is the latest in the long line of banks to reduce their rates.
Santander has 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.
Earlier last month the banking giant Santander reduced its tracker and fixed rate mortgages to take an even larger proportion of the UK market. As well as reducing many of their mortgage rates, they have also launched a brand new two year fixed rate mortgage.
Their new two year fixed rate mortgages is priced at 4.15% for a loan to value (LTV) of up to seventy five percent which would mean borrowers would need a 25% deposit. Those looking to take out a £100,000 home loan would require £25,000 to be able to apply for this mortgage. The great news is that unlike many competitors the arrangement fee is only £99, which is good news for struggling home movers.
Santander made the move to reduce their mortgage offering to complement their existing range of financial services and products. They also wanted to build on their existing mortgage offering of longer term products for “those customers looking for stability in their mortgage payments”.
The bank launched a 5 year fixed rate mortgages to provide its customers with a longer term (5 years) mortgage that provides the security of knowing how much monthly repayments would be. The mortgage is 4.99% with a higher £995 fee for remortgaging customers.
Andy Smith, a spokesperson for Santander said: “Our latest rate cuts provide even greater choice to customers looking for the security of a fixed rate mortgage and our market leading four year deals are sure to appeal to borrowers wanting to lock into a great rate for the longer term. As the Home of UK mortgages we are also pleased to continue to help and support borrowers with a range of competitive deals.”
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