Santander has made a series of rate cuts for those looking to remortgage or take out a product transfer, including residential and buy-to-let (BTL) deals.
Effective from tomorrow, Tuesday 13th February, selected standard residential fixed rates will be reduced by between 0.05% and 0.16% for remortgages.
In addition, all buy-to-let fixed rates will be reduced by between 0.05% and 0.15%.
Newspage asked brokers for their thoughts on this interesting re-price from Santander, and what effect this might have on the rest of the market in the coming days.
Justin Moy, managing director at EHF Mortgages:
“This is a surprising but welcome move by Santander given how the market has reacted to increasing swap rates over the past few weeks.
“While the savings are small, this is more about reversing those recent increases and will give borrowers renewed confidence.
“We’re currently in a yo-yo mortgage market.”
Amit Patel, adviser at Trinity Finance:
“Santander announcing a rate reduction is welcome news for those looking to remortgage or take out a Product Transfer.
“Swap rates have increased recently so it’s a bit of a surprise Santander have announced a modest rate reduction.
“Rates have been going up and down since the turn of the year and this trend may continue for the foreseeable future. We’re on a rate rollercoaster right now.”
Peter Stamford, mortgage expert at The Mortgage Uni:
“The mortgage market in February has had more ups and downs than a step aerobics class, although thankfully with a lot less lyrca.
“Santander is the latest to wiggle its way towards the top. Let’s hope more lenders follow.”
Ken James, director at Contractor Mortgage Services:
“The ebb and flow of the mortgage market continues to send mixed messages to the public. One day we are announcing rate increases, the next day we are announcing decreases.
“What’s certain is that you cannot rest on your laurels, as this is a very fast-moving market.
“The rate cuts, albeit small, are very welcome. The message to all borrowers is don’t sit on the fence, but get your deals secured just in case the next news announcement is a rate increase.”
Robert Timm, managing director at Sunland Mortgages Limited:
“With the recent trends of lower purchase rates versus higher remortgage rates, hopefully this will see more lenders start to reward existing borrowers, many of who will be coming to the end of ultra-low fixed rates this year.
“We know, from speaking to our clients, that many people are extremely worried what will happen to their expenditure and finances when they move onto a higher rate so any cuts are welcome.”
Gary Bush, financial adviser at MortgageShop.com:
“Santander offering a further downward tweak to its remortgage and existing client Product Transfer fixed rates is a welcomed reverse to some UK lenders last week heading in the other direction.
“It’s clear that property purchase activity in the UK and increases in property values again are driving applicants back to financial adviser firms and with this major lender decreasing its rates again, it will further fuel the fire for the high street property hunters.”
Katy Eatenton, mortgage and protection specialist at Lifetime Wealth Management:
“This is a brilliant start to a Monday. While other lendes are shying away from remortgages, Santander are showing no fear and are dropping rates.
“Even though the reduction is small, it will provide a real confidence boost to borrowers.”
Ben Perks, managing director at Orchard Financial Advisers:
“They may be very modest reductions, but they’re reductions all the same and I’ll take them. It is a welcome sight as we’ve seen back-to-back increases from lenders over the past week or so.
“It’s also refreshing to see they have applied similar reductions for buy-to-let, remortgage and Product Transfers.
“A reduction across the board shows an appetite for lending in all areas, which is encouraging.
“Hopefully Santander are leading the way with this round of reductions, and we’ll see other lenders follow suit this week.”
Ben Tadd, director at Lucra Mortgages:
“This is good news for mortgage borrowers with a big high street bank, Santander, reducing their rates after hiking them up in recent weeks.
“This will create a small sigh of relief among mortgage borrowers, against a backdrop of a few big lenders withdrawing their product range and introducing higher rates at the end of last week, in reaction to swap rates increasing.”
Akhil Mair, director at Our Mortgage Broker:
“Santander has just announced a series of rate cuts for clients interested in remortgaging or opting for a product transfer.
“These reductions apply to both residential and buy-to-let deals, with rate cuts of up to 0.16%.
“This is definitely a great start to the week for both our clients and us. With Santander taking this proactive step to offer more competitive rates, it’s highly likely that we’ll see a positive ripple effect throughout the market in the coming days.
“These rate cuts not only benefit existing Santander customers but also create a healthier competitive landscape, prompting other lenders to potentially review and adjust their offerings.
“This could mean more attractive options and better deals for borrowers as competition heats up.
“I’m optimistic about the opportunities these changes bring and look forward to discussing how we can leverage them to provide even greater value to our clients.”
Rohit Kohli, director at The Mortgage Stop:
“This is a welcome move from Santander, and a small tweak downward to offset some of the increases of last week.
“Swap rates have been headed upwards recently so lenders have been reflecting that in their pricing but this move may help calm the nerves ahead of this week’s inflation numbers.
“Every little helps especially for those that are not able to switch to lower rates available elsewhere.”
Elliott Culley, director at Switch Mortgage Finance:
“Its great to see there are still lenders looking to lower rates this week.
“Santander have had a more measured approach when it has come to reducing rates recently.
“This has allowed them to continue to lower rates whereas other lenders provided huge initial reductions, before having to backtrack recently as margins were squeezed due to an uptick in swap rates.
“We are now at a crossroads, where it’s likely we will see marginal moves by lenders until new inflation and economic data is released.”
Michelle Lawson, director at Lawson Financial:
“Rate decreases are always good news to pass on to borrowers and these have been reduced prior to Santander’s cut off for product transfers, which is great service.
“A good broker will now review their customers and pass on the positive news. Confidence in the market is returning after a brief rocky period.”