Santander launches one-year fixed rate buy-to-let product

Santander has launched a one-year fixed rate buy-to-let mortgage product, becoming the first top five mortgage lender in the UK to offer a one-year fixed rate product for landlords.

The one-year fixed rate is available at 5.37% up to 75% LTV with a £1,749 fee.

In addition, the lender has reduced rates across its existing buy-to-let and residential fixed and tracker rate mortgage ranges by up to 0.14%.

In its buy-to-let range, the largest reduction is to a two-year fixed rate at 60% LTV, down by 13bps to 5.29% with no fee. A five-year fixed rate at 75% LTV has reduced to 4.81% with no fee, while two-year remortgage products have reduced to 4.78% at 60% LTV with a £1,749 fee and to 5.43% at 75% LTV with no fee.

Santander's two-year fixed rate residential products have reduced by up to 14bps, now starting from 4.58% at 60% LTV with a £999 fee, 4.98% at 75% LTV with no fee, 5.53% at 85% LTV with a £999 fee, and 5.93% at 90% LTV with a £999 fee.

Three-year residential fixed rates have reduced to 4.53% at 60% LTV with a £999 fee and 4.87% at 75% LTV with no fee. Three-year remortgage product reductions include a 60% LTV rate at 4.60% with a £999 fee and a 75% LTV rate at 4.96% with no fee.

Five-year fixed rate purchase rates have reduced by 11bps at 60% LTV to 4.37% with no fee and by 5bps at 95% LTV to 5.41% with no fee and £250 cashback. Five-year remortgage rates have reduced to 4.38% at 60% LTV with a £999 fee and to 5.55% at 90% LTV fee-free.

Graham Sellar, head of intermediary channel as Santander UK, said: “We know that the volatile rates this year have made it a tricky market for both customers - and brokers supporting them - with a remortgage or new borrowing. We’re pleased to introduce a one-year fixed rate product to our buy-to-let offering, giving landlords certainty of payments, while offering more flexibility than a traditional longer fixed rate.”