Santander UK has announced it will become the first high-street mortgage lender to offer a sub-4% mortgage in 2025. From Thursday 13 February, eligible customers will be able to apply for one of four new products as the lender launches a range of two and five-year fixed, 3.99%, residential purchase and remortgage rates, at 60% LTV.
The lender has also announced reductions of up to 0.40% on more than 80 other mortgages products, also live from Thursday. The raft of rate cuts impacts residential purchases, remortgages, new build purchases, as well as buy-to-let purchases and remortgages.
In addition to the new 3.99% residential products, the lender is introducing a new range of 65% LTV options on buy-to-let (BTL) for purchase and remortgage customers, giving them more choice between 60% and 75% LTV.
Examples of the new products and rates include:
Residential purchase - 60% LTV two and five-year fixed rate, 3.99% with a £1999 fee.
Residential remortgage - 60% LTV two and five-year fixed rate, 3.99% with a £1,749 fee.
BTL purchase – 65% LTV:
two-year fixed rate, 4.35% with a £1,749 fee or 4.89% with no fee; and
five-year fixed rate, 4.32% with a £1,749 fee or 4.59% with no fee.
BTL remortgage – 65% LTV:
two-year fixed rate, 4.35% with a £1,749 fee or 4.89% with no fee; and
five-year fixed rate, 4.25% with a £1,749 fee or 4.52% with no fee.
David Morris, Head of Homes at Santander UK, said: “We’re delighted to launch a range of new products, along with rate cuts on our existing range, which will make a difference to customers across every stage of the home-buying journey. From prospective buyers looking to get on the ladder for the first time, to landlords in the buy-to-let market, we’re proud to offer competitive products that help our customers reduce the overall cost of their mortgage.”
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The information contained in our press releases is intended solely for journalists and should not be used by consumers to make financial decisions.
A full list of changes and new products, including rates, will be available on Santander For Intermediaries website from Thursday: https://www.santanderforintermediaries.co.uk/
About Santander
Santander UK is a financial services provider in the UK that offers a wide range of personal and commercial financial products and services. At 31 December 2024, the bank had around 18,000 employees and serves around 14 million active customers, including 7 million digital customers. Santander UK is subject to the full supervision of the FCA and the PRA in the UK. Santander UK plc customers’ eligible deposits are protected by the FSCS in the UK.
Banco Santander (SAN SM, STD US, BNC.LN) is a leading commercial bank, founded in 1857 and headquartered in Spain and one of the largest banks in the world by market capitalization. The group’s activities are consolidated into five global businesses: Retail & Commercial Banking, Digital Consumer Bank, Corporate & Investment Banking (CIB), Wealth Management & Insurance and Payments (PagoNxt and Cards). This operating model allows the bank to better leverage its unique combination of global scale and local leadership. Banco Santander aims to be the best open financial services platform providing services to individuals, SMEs, corporates, financial institutions and governments. The bank’s purpose is to help people and businesses prosper in a simple, personal and fair way.