Santander reduces purchase and remortgage rates by up to 0.10%

From tomorrow, Santander is reducing first-time buyer, home mover and remortgage rates by up to 0.10%.

In the bank's first-time buyer range, all 60% LTV two-year fixed rates are reducing by up to 0.07% and all 85-95% LTV two-year fixes are down by up to 0.08%.

Selected residential home mover two-year fixed rates between 60-75% LTV will decrease by up to 0.09%.

For remortgage, selected 60-75% LTV two-year fixes are down by up to 0.07% and all 75% LTV five-year fixes will see cuts of up to 0.10%.

In Santander's product transfer range, selected 60-75% LTV two-year fixes are also reducing by up to 0.07% and all 75% LTV five-year fixes will reduce by up to 0.10%.

Last week, Santander reduced residential affordability rates in response to the FCA’s call for lenders to design their affordability rates to best meet customers needs in a market where interest rates are declining.

All residential affordability rates were reduced by up to 0.75%, bringing them to the lowest levels since 2022.

In real terms, this means that many customers applying for a residential mortgage from Santander UK can now borrow between £10,000 - £35,000 more.