Santander latest lender to hike mortgage rates
Santander has announced increased mortgage rates across its new business and product transfer range, along with the addition of 10-year and new-build options.
As of 22 July, Santander will increase mortgage pricing by as much as 0.3%, with higher loan to value (LTV) deals facing larger rises.
For example, first-time buyers selecting a two-year fix at 60% LTV with a £999 fee and £250 cashback will see the rate increase by 0.16% to 4.6%, while the corresponding option at 90% LTV will rise by 0.3% to 4.99%.
For homemovers, the two-year fix at 60% LTV with a £1,499 fee and £250 cashback will go up by 0.23% to 4.55% and its 90% LTV counterpart will rise by 0.25% to 4.89%.
Across its product transfer range, all one-, two, five- and seven-year fixed residential rates will rise by as much as 0.2%. On the buy-to-let (BTL) side, increases of up to 0.25% have been applied to all two- and five-year fixes at 60% and 75% LTV.
Santander has expanded its 10-year fixed rate, adding options from 85% to 95% for first-time buyers and homemovers.
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The products are priced the same for each borrower type and includes an option at 85% LTV with a £999 fee and £250 cashback, priced at 5.49% or 5.59% with no fee. At 90% LTV, the 10-year fix has a rate of 5.59% with a £999 fee or 5.69% with no fee, while the fee-free 95% LTV deal is priced at 5.8%.
Santander has also added new-build exclusive products with a £1,499 fee on two-, five-and 10-year fixed rate terms.
The bank has become the latest lender to increase rates in response to rising swap rates, following NatWest, Nationwide, HSBC and Halifax in raising prices in the last few days.
