Santander launches its lowest ever five-year fix at 1.89%
Santander for Intermediaries has launched its lowest ever longer term fixed rate mortgage priced at 1.89%.
At the end of the fixed period, which expires on the 2 May 2022, the mortgage reverts to the bank’s 4.49% standard variable rate. The overall cost for comparison is 3.55% APRC representative.
The 1.89% rate has a £999 arrangement fee and 5% early repayment charges until 2 May 2022. Applicants will need a 40% deposit to qualify and the maximum loan is £1 million.
Aaron Strutt, product director at Trinity Financial, says: “There are currently five lenders offering 1.89% five-year fixes and three with even cheaper rates.
“If you are looking for a longer term fixed rate, there is a huge amount of choice at the moment. Santander is one of the lenders still offering up to five times salary mortgages and it still provides interest-only.”
Representative example: A mortgage of £150,000 payable over 25 years, initially on a fixed rate until 02/05/2022 at 1.89% and then on a variable rate of 4.49% for the remaining 23 years, would require 62 monthly repayments of £627.78 followed by 238 monthly repayments of £791.20. The total amount repayable would be £227,227.96 made up of the loan amount, plus interest (£77,227.96) and fees of £999. The overall cost for comparison is 3.55% APRC representative.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
To secure a fixed rate mortgage call Trinity Financial on 020 7016 0790.
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