Santander Break into the Sub-4% 2-Year Fixed Rate Market
In the past week, numerous lenders have been competing within the sub-4% five-year fixed-rate market. However, for the first time in 2024, Santander has broken the 4% barrier with a market-leading 3.99% two-year fixed rate for purchases.
Santander has revealed further reductions to their fixed rates for home purchases, now providing sub-4% mortgage options across two-, three-, and five-year fixed rates. These offers are available for loans up to £3 million, require a 40% deposit, and come with an arrangement fee of £999.
In addition, Santander has announced several changes to both their residential and buy-to-let mortgage ranges:
Residential Mortgages
- Reducing Selected fixed rates by up to 0.29% for purchases and remortgages.
- For existing customers, Santander have announced reductions of up to 0.20%.
Buy-to-Let Mortgages
- Reducing selected fixed rates by up to 0.0.9% for existing and new customers.
- Introducing new tracker rate mortgages for customers with a 25% deposit.
Representative example for a 2-year fixed rate:
For a purchase of £500,000 with a capital and interest mortgage of £300,000 payable over 25 years:
- Initial Rate: 3.99% for 2 years, then reverts to Santander’s standard variable rate, currently 7.25% for 23 years.
- Payments: 27 payments of £1,585.64, followed by 273 payments of £2,128.03
- Total Amount Repaid: £624,174.22 (including the initial loan amount, interest, product fee, final repayment charge, and completion fee)
- Overall Cost for Comparison: 6.8% APRC representative
Harps Garcha, Director at Brooklyns Financial, commented to Yahoo, “After a week of rate reductions, Santander has raised the stakes with a sub-4% offer on a two-year fixed rate. It’s exciting to see how this will shake things up and who will follow suit next week.”
The Importance of Expert Guidance
Given the ever-changing market conditions, seeking the assistance of a mortgage consultant is more important than ever. With their expertise, you can navigate these fluctuations effectively and find the best possible mortgage options tailored to your needs.
Our experienced mortgage consultants are ready to assist you with personalised guidance every step of the way. For an initial consultation, speak with our experts or call us at 01628 564631. We're here to help you navigate your mortgage journey with informed advice and care.
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The information contained within was correct at the time of publication but is subject to change.
Source: Santander for Intermediaries
