Spanish Giant Santander Reduced Rates

by Mark Johnston

Spanish giant Santander have reduced rates across some of its mortgage range to attract more borrowers from other providers. Borrowers looking for a competitive deal could do worse than taking a look at Santander’s new range that was re-priced on Friday.

Santander, who moved into the UK market by buying up failing banks and building societies hit hard by the credit crisis has revised its mortgage proposition by reducing its rates which include fixed rate and tracker mortgages. At the same time they have launched two other products to bolster their proposition which they hope to use to take a larger share of the UK mortgage market.

A spokesperson from Santander suggested that the new rates may only be for a limited period and that customers may need to rush to benefits from its rates. The comments were in relation to their new 2.99% fixed rate mortgage which had a 60% loan to value (LTV) over two years. Santander are only offering the 2 year fixed product to customers who are looking to remortgage and are only offering the mortgage until the 31st January 2011 so home owners will need to rush to complete by that date.

The spokesperson pointed out that: “Rewarding loyalty is also a priority and our latest rate cuts demonstrate our commitment to providing great products for both homebuyers and remortgagers,”

The bank also cut their mortgages by up to 0.35%, this came a month after they announced other cuts including cutting up to 0.26% from all their five year fived rate mortgages at the end of last  month.

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.

Spanish bank also launched a brand new tracker mortgage at 3.39 percent which again had a 75 percent loan to value(LTV) but has no fees and is on offer to all types of borrowers.

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.

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.

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