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Intermediary Santander will cut most new fixed-rate business loans to 28 bps and select track rates to 34 bps tomorrow (March 21), which brokers hope will encourage further cuts by lenders.
The major bank’s brokerage arm adds that it will add a five-year, 60% flat-rate purchase on credit to the product’s 3.99% cost, with a £999 fee. At the same time, its five-year flat-rate offer of 60% LTV with no commission will be withdrawn.
For product transfers, selected fixed-rate housing loans will be reduced to 11 basis points.
There are no changes in rates from purchase to lease.
Highlights of the new cuts on business home purchases include:
- A two-year fixed rate loan with a 60% LTV of 4.64% with no fees, reduced by 25 basis points.
- 5-year fixed-rate deal with 75% LTV at 4.15% no commission, reduced by 28bp.
- And the two-year LTV tracking rate of 95% at 6.15% commission-free – only for loyal movers – was reduced by 34 bp.
The home mortgage cuts include a two-year 90% LTV fixed rate deal at 5.09% with a £999 fee that will be reduced by 11 basis points.
Highlights of the new build shortcuts include:
- Flat rate offer of 60% LTV for two and a half years at a flat rate of 4.64% with no commission reduced by 25 basis points.
- Loan 75% LTV for two and a half years at a fixed rate of 4.69% with no commission, reduced by 25 basis points.
- And 85% LTV, a two-and-a-half-year fixed rate deal at 4.89% no commission, down 26bp.
The lender says its product transfer rates are tailored to each borrower and cannot be found on search engines.
Brokers must log into their online mortgage transfer service at Introducer Internet to view a customer’s rate selection. But consultants can use the estimated LTV to see what rates are available in the product transfer rate bulletin on the latest rates page from tomorrow.
He adds that completion dates have been pushed back to August 5 for product transfers, September 29 for purchases, and October 6 for remortgages.
Homes at Santander COO Aaron Shinwell says: “We work hard to help clients through every step of the mortgage market, whether it’s buying their first home, moving out or remortgaging.
“By lowering rates in a number of LTV categories and on two-, three- and five-year fixed deals, we are delivering more value to a wide range of clients.”
Brokers are hoping Santander’s move will surpass the current 4% base rate and remain unchanged at the next meeting of the Bank of England’s Monetary Policy Committee on Thursday.
Forecasters had expected the rate to rise, but now they say bank failures, forced mergers and industrial bailouts in the US, UK and Switzerland over the past two weeks due to global interest rate hikes could delay that decision.
SelfEmployedMortgageHub.com director Graeme Cox says: “UK swap rates, on which fixed rate lenders are based, have been falling for a week or two.
“And they continue to fall this morning as central banks are expected to slow down their base rate hikes given current market conditions. This is great news for mortgage borrowers.”
Imran Hussain, director of Harmony Financial Services, adds: “I hope this is a start in a positive direction from other lenders, but I think a lot will also depend on the markets and what the BoE does with the base rate this week. . ”
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