Santander cuts higher LTV rates for first-time buyers and home movers

Santander is cutting selected fixed mortgage rates across its first-time buyer, home mover and remortgage ranges from Friday 24 April, with reductions of up to 25bps.

The lender said the changes include a 25bps cut to its 98% loan-to-value My First Mortgage product, which will fall to 5.60%.

Santander said this was the second time it had reduced rates this month, following cuts across higher LTV lending products on Thursday 16 April.

The refreshed range also includes a number of first-time buyer products that Santander said were market-leading.

These include a 95% LTV three-year fixed rate at 5.55% with no fee and £250 cashback, an 85% LTV two-year fixed rate at 4.80% with a £999 fee and £250 cashback, and an 85% LTV five-year fixed rate at 4.98% with no fee and £250 cashback.

The lender said the new rates will be available both through brokers and direct to customers under its no dual pricing pledge.

FIRST-TIME BUYER CHANGES

Within the first-time buyer range, Santander said its My First Mortgage broker-exclusive product at 98% LTV, requiring a minimum £10,000 deposit and including £250 cashback, is being reduced by 25bps.

Selected two-year fixed rates for first-time buyers are being cut by up to 14bps, selected three-year fixed rates by up to 25bps, and selected five-year fixed rates by up to 25bps.

HOME MOVER AND NEW-BUILD PRODUCTS

For home movers, selected two-year fixed rates are being reduced by up to 6bps, three-year fixed rates by up to 10bps, and five-year fixed rates by up to 5bps.

The same level of cuts is being applied across Santander’s new-build home mover range.

In its new-build first-time buyer range, selected two-year fixed rates are being cut by up to 14bps, selected three-year fixed rates by up to 25bps, and selected five-year fixed rates by up to 10bps.

REMORTGAGE RATES ALSO CUT

Santander is also reducing selected remortgage products, with two-year fixed rates down by up to 13bps and five-year fixed rates down by up to 10bps.

The latest move adds to a busy week for mortgage pricing as lenders continue to adjust rates in the higher LTV segment, particularly for first-time buyers.