Santander proclaims additional spherical of mortgage fee reductions

Santander has introduced one other spherical of mortgage fee reductions this week, with some product interest rates decreasing as a lot as 0.2 %.

This comes only one week after the financial institution’s final spate of fee cuts, which noticed curiosity fall by between 0.05 and 0.29 % on sure merchandise.

The new charges have turn into dwell from Tuesday, August 22, and particulars respective to completely different mortgage values could be discovered here.

A press release on Santander’s web site reads: “On Tuesday, August 22, we’re reducing residential and Buy to Let fixed rates across the new business and product transfer ranges.

“In the new business range, we’re introducing new first-time buyer (FTB) exclusives with £500 cashback and no product fee. We’re also introducing a new range of residential three-year fixed rates with no product fee, available to purchase and remortgage clients.”

It added: “We’re replacing the 2.5-year fixed New Build range with new three-year fixed rate options. We’re launching new Buy to Let options with a £749 product fee for new business and product transfer clients, alongside the £0 and £1,749 product fee options subject to loan size.”

Commenting on the brand new charges on platform Newspage, Jamie Lennox, director at Dimora Mortgages stated: “It’s great to see another Big Six lender return with further rate reductions despite plenty of uncertainty remaining around core inflation and how high the Base Rate may still need to go.

“We may see other lenders follow suit. Mortgage lending has slowed noticeably over the summer holidays and we could see more lenders fight it out to gain market share from a reduced pool of people seeking mortgages.”

Ashley Thomas, director at Magni Finance famous: “Though this is welcome news, the mortgage market remains highly uncertain and volatile. Inflation has come down but this was expected.

“I expect to see more lenders look to reduce their rates as they increased them significantly in the past two months or so. Perhaps what we’re seeing is a reaction to an overreaction.”

The Bank of England elevated the Base Rate for the 14th time consecutively since 2021 to five.25 % on August 3.

Despite this, mounted mortgage rates of interest stay on a downward development. New Rightmove knowledge reveals the common five-year mounted mortgage fee is now 5.81 %, down from 6.08 % this time simply three weeks in the past.

However, Samuel Mather-Holgate, an impartial monetary advisor at Mather and Murray Financial warns the spate of rate of interest cuts “won’t last”, including that additional anticipated Base Rate hikes are anticipated to drive rates of interest again up once more.

Mr Mather-Holgate stated: “Lenders are still trying to attract new business by cutting rates for borrowers, but this won’t last.

“Whilst new lending has nearly dried up, lenders have the appetite to take on borrowers with little margin in their pricing, but with inflation staying high and a central bank more likely to increase rates rather than cut them, rates won’t continue to be cut for much longer.

“Until the Bank of England starts cutting rates, which should be later this year, borrowers face uncertainty around which direction the cost of borrowing money will go.”

Darryl Dhoffer at The Mortgage Expert echoed the sentiment saying: “Make hay while the sun shines, as next month could be a lot different.”