Santander becomes first lender to bring back sub-4% two-year fixed mortgage rates
Santander for Intermediaries is the first of the big lenders to reintroduce a sub-4% residential two-year fixed mortgage rate in its latest round of price reductions.
Santander for Intermediaries now has a two-year fix at 3.99% and a five-year fix at just over 3.80%. These mortgages swiftly undercut many of the rates available through its competitors.
The 3.99% two-year fix from Santander is available to borrowers purchasing a property and borrowing between £6,000 and £3 million. There is a £999 arrangement fee, and applicants will need a 40% deposit to qualify.
Aaron Strutt, product director at Trinity Financial, says, "Over the next week or so I would expect more lenders to come out with sub-4% two-year fixes. Many borrowers want to take shorter-term fixes rather than lock in for five years because they think rates will probably come down.
"Santander is a popular lender because it has a good interest-only policy and generous income multiples for borrowers looking to borrow up to 5.5 times their salary."
Representative example: A capital and interest mortgage of £400,000 payable over 30 years, initially on a fixed rate basis at 3.99% until 02/02/2027 and then on the lender's 7.25% standard variable rate for the remaining 33 years. The 3.99% rate would require 27 monthly repayments of £1,905.77 followed by 333 payments of £2,676.80. The total amount repayable would be £944,238.94 made up of the loan amount, plus interest (£544,628.48) and £999 (product fee), £225 (final repayment charge), £0 (completion fee). The overall cost for comparison is 6.8% APRC representative.
Call Trinity Financial on 020 7016 0790 to secure a mortgage, book a consultation, or complete our mortgage questionnaire.
The information contained within was correct at the time of publication but is subject to change.
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