Santander Launch New Products and Cut Rates

by Mark Johnston

The Spanish banking giant Santander has 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.”

The Spanish bank reduced its tracker mortgages by up to 0.22%. Their two year tracker mortgage was reduced by 0.10% to 3.19% which has a 75% loan to value (LTV). The seventy percent loan to value (LTV) version has been reduced to 2.55% with a fee of £995.

Several fixed rate mortgages were reduced including their 2 year 70% loan to value fixed rate mortgages from 3.65% to 3.45%. At the same time their 75% loan to value version was reduced by 1.5% to 3.59% and their three year fixed rate mortgage with a 70% loan to value (LTV) was reduced by a massive 0.26% to a great 3.79%. All of these mortgages come with a £495 product fee and also Santander’s Homebuyer or Remortgages Solution which provides borrowers with free mortgage valuations and a £250 cash back option upon completion of the loan. The Remortgage offer also includes a free mortgage valuation together with either free legal services or £250 cash back.

Finally Santander also launched a 2.99% two year fixed rate mortgage for those with a 60 loan to value (LTV) so a far amount of equity is required. A spokesperson at the bank suggested that customers would need to hurry to get the rate as remortgages would need to be completed by the end of January 2011.

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