Santander increases mortgage and affordability rates

In response to current market conditions, Santander is increasing its new business and product transfer fixed rates by up to 0.53%.

As pay rates are going up, the bank says it also needs to increase some residential and buy-to-let affordability rates "to continue to lend responsibly and in line with regulatory requirements". 

In its new business range, all residential and buy-to-let rates have increased by up to 0.41% and all product transfer rates have risen by up to 0.53%. There are no increases to Santander's tracker rates.

Affordability rate increases

Santander has announced "minor changes" to its residential affordability rates, with no changes to standard and five-year fixed rates.

In its buy-to-let range, all affordability rates are going up by 0.50%, with the standard rate increasing from 7.00% to 7.50%, the five-year fixed rate increasing from 5.00% to 5.50%, and the pound-for-pound remortgage rate also rising from 5.00% to 5.50%.

Santander noted that loan-to-income limits remain unchanged.