Santander launches more tracker rate mortgages to cater for high-net-worth clients
Santander for Intermediaries has launched more Bank of England tracker rates to target higher-net-worth clients.
The bank offers a selection of tracker rates although the margin above the base rate varies depending on the mortgage loan size and deposit. Santander’s tracker rates do not have early repayment charges, and the arrangement fees range between £0 and £1,999. They are available for property purchases and remortgages.
Santander’s latest tracker rates are available for borrowers looking to raise between £250,000 and £5 million. For applicants with a 40% deposit, there is a margin over 0.79% over the current 5.25% Bank of England base rate for two years, and the maximum loan is £5 million. This rises to 0.99% over base for two years when borrowers have a 25% deposit, although the maximum loan size is £3 million.
Aaron Strutt, product director at Trinity Financial, says: “Lots of the lenders offer tracker rates even though most people take two or five-year fixes. Tracker rates tend to be popular with borrowers who want a flexible mortgage and do not want to be tied in. They are also used by those who think fixed rates are too high and expect they can swap to a cheaper rate in the future.
"If you are going to take a tracker with early repayment changes, it is worth checking you can switch-to-fix at any time in case the bank rate increases."
How much is Santander’s lowest tracker rate?
Santander’s most competitive tracker rates are available to borrowers looking to borrow between £6,000 and £1.5 million. For those with a 40% deposit, that rate is 0.35% over the Bank of England base rate. This rises to 0.5% over base for two years when borrowers have a 25% deposit and 1.52% over base for two years when borrowers have a 10% deposit.
Is the Bank of England base rate going to come down soon?
The European Central Bank has eased the pressure on borrowers across the eurozone after cutting its main interest rate for the first time in almost five years. This is likely to mean we are getting closer to the Bank of England's Monetary Policy Committee lowering the base rate.
Some of the UK's largest banks and building societies have recently lowered their fixed mortgage weeks. Two-year fixes now start from 4.78%, and five-year fixes start from just over 4.30%.
The mortgage market continues to be volatile, with data from Moneyfacts showing that the average rate is available for just 15 days.
Call Trinity Financial on 020 7016 0790 to secure a tracker 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.
Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage
Get started today
Speak to one of our mortgage experts. Book an appointment to come and see us or request one of our experts to call you.
