Santander has increased some mortgage rates and reduced others, with cuts resulting in sub-4% mortgage options at high-loan-to-value (LTV) tiers.
The changes will come in on 4 March and see pricing at 80% and 90% LTV falling below 4%, following cuts of up to 0.38% across two-, three- and five-year fixes for first-time buyers at 85%, 90% and 95% LTV.
This will include a two-year fix at 90% LTV priced at 3.99%.
It joins the likes of HSBC, Nationwide, Yorkshire Building Society and Lloyds Banking Group in offering rates below 4% at these lending tiers.
First-time buyer rates for new-build homes will be reduced by similar amounts and residential homemover rates, including new build, at 85%, 90% and 95% across two- and three-year fixed rates will be cut by up to 0.33%. Additionally, selected five-year fixed rates at 75% and 85% LTV will be cut by as much as 0.16%, and all 90% and 95% LTV pricing will be cut.
Further, Santander will reduce the rate of its My First Mortgage product by 0.2% to 4.99%. This deal allows borrowers to access a 98% LTV mortgage up to £500,000 with a £10,000 deposit.
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Elsewhere, reductions of up to 0.11% will be made to all two-year fixed residential remortgage rates at 85% and 90% LTV, while all three-year fixes at 60% and 75% LTV will be cut by as much as 0.08%. Also, Santander will reduce all five-year fixed residential remortgage rates by up to 0.05% at 85% and 90% LTV.
Meanwhile, all two- and five-year fixed remortgage rates at 60%, 65% and 75% LTV will be cut by up to 0.04%.
Santander will also make increases to some mortgage pricing, including its residential homemover rates including new build, where selected 60% and 75% LTV two-year fixes rates will rise by up to 0.07%.
The bank will also increase tracker rates, such as its residential homemover, including new-build pricing, where selected two-year fixes at 60% and 75% LTV will be increased by up to 0.16% and the two-year tracker residential remortgage with a £999 fee will rise by 0.01%.
Across its product transfer offering, Santander will withdraw the residential two-year fixed rate at 60% LTV with a £1,999 fee and rate of 3.62%.
It will also cut residential rates up to 90% LTV, and BTL product transfer rates at 75% LTV.
David Morris, director of homes at Santander UK, said: “We launched My First Mortgage with the aim of helping more first-time buyers take their initial step onto the property ladder. I’m proud to say that in the weeks since we’ve launched, we have done just that, with many first-time buyers receiving offers of lending under My First Mortgage.
“It’s fantastic to be able to go one step further and reduce the interest rate so soon after launch to that crucial sub-5% mark, that we know so many buyers are seeking when looking at higher-LTV borrowing.
“Our latest cuts show that we’re also still here to support a range of buyer types, with reductions across our new-build, homemover and remortgage products helping customers further manage the costs of owning their dream home.”
