Santander is cutting rates across a wide range of higher loan-to-value mortgage products from Thursday 16 April, including two-year fixes for first-time buyers borrowing at 85% to 95% loan-to-value.

The lender said the changes form part of a broader repricing across selected residential mortgages and will include reductions of up to 0.28% on all 85% to 95% loan-to-value two-year fixed first-time buyer products.

Following the changes, Santander said its first-time buyer rates at 85% loan-to-value and above will start from 4.90%.

The reductions will also apply across selected new-build first-time buyer exclusives, home mover products and parts of its large loan range. The revised pricing will be available to customers applying either through brokers or direct, under the bank’s no dual pricing approach.

For first-time buyers, Santander is reducing all 85% to 95% loan-to-value two-year fixed rates by up to 0.28%. Selected 90% to 95% loan-to-value three-year fixed rates will fall by up to 0.19%, while selected 85% to 95% five-year fixed rates will reduce by up to 0.17%.

It is also lowering all 75% loan-to-value 10-year fixed rates by up to 0.15%, alongside a 0.30% reduction to its 90% loan-to-value two-year tracker.

For home movers, all 60% to 95% loan-to-value two-year fixed rates will reduce by up to 0.28%. Selected 90% to 95% loan-to-value three-year fixed products will fall by up to 0.19%, with selected 85% to 95% five-year fixed rates down by up to 0.17%.

Santander is also cutting all 60% to 75% loan-to-value 10-year fixed rates by 0.15% and reducing all 60% to 95% loan-to-value two-year tracker rates by up to 0.25%.

Across its new-build range for first-time buyers, all 85% to 95% loan-to-value two-year fixed rates will reduce by up to 0.28%, while selected 90% to 95% loan-to-value three-year fixes and selected 85% to 95% five-year fixes will fall by up to 0.19% and 0.17% respectively. The 90% loan-to-value two-year tracker will also be cut by 0.30%.

For new-build home movers, Santander is reducing all 60% to 95% loan-to-value two-year fixed rates by up to 0.28%. Selected 90% to 95% loan-to-value three-year fixed rates and selected 85% to 95% five-year fixed rates will also be cut, by up to 0.19% and 0.17% respectively, while all 60% to 95% loan-to-value two-year tracker rates will fall by up to 0.25%.

Ben Merritt, head of mortgage trading at Santander UK, said: “It’s natural that those looking to buy, move or remortgage in the current market may be feeling uncertain about what they should do next. While the recent trend has been to see rates increase, we’re pleased that we’re able to pass on a reduction in borrowing costs following a fall in swap rates.

“While no one can accurately predict where the market will go next, taking professional advice on what’s possible from your lender or an independent broker, can help borrowers to make a decision based on the current market and what any movements mean for them specifically.”