Santander announces cut to mortgage interest rates after Bank of England decision

Last Updated, Feb 7, 2024, 11:09 AM

Press Releases

Share This

Santander has announced another reduction to mortgage rates in a boon for homeowners and first-time homebuyers.

The lender confirmed that the changes to interest rates across fixed-rate products will come into effect as of today.

Last week, the Bank of England opted to hold the country’s base rate at 5.25 per cent once again as it attempts to rein in inflation.

Mortgage holders have been saddled with soaring repayments over the last year due to high interest rates but economists are betting on a significant rate cut from the central bank later in the year.

Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.

Santander is cutting mortgage rates once again

GETTY

As of today, the new interest rate changes to Santander’s line of fixed rate mortgage products will include:

60 per cent LTV two-year fixed rate residential purchase mortgage with a £999 product fee is now priced at 4.20 per cent, down from 4.25 per cent
75 per cent LTV two-year fixed rate residential purchase mortgage with a £999 product fee is now priced at 4.30 per cent, down from 4.35 per cent
90 per cent LTV two-year fixed rate residential purchase mortgage with a £999 product fee is now priced at 4.89 per cent, down from 4.94 per cent.

Furthermore, here is an example of the rate reductions being implemented across Santander’s line of five-year fixed rate mortgages:

60 per cent LTV five year fixed rate residential purchase mortgage with a £999 purchase fee is now priced at 3.94 per cent, down from 4.04 per cent
75 per cent LTV five year fixed rate residential purchase mortgage with a £999 purchase fee is now priced at 4.14 per cent, down from 4.24 per cent
90 per cent LTV five year fixed rate residential purchase mortgage with no purchase fee is now priced at 4.64 per cent, down from 4.84 per cent.

The Bank of England will likely not cut rates until later in 2024PA

Despite the recent trend of mortgage lenders slashing interest rates, experts have cautioned Britons on trying to get on the property ladder too early ahead of a potential Bank of England base rate cut.

Michael Dinich, a personal finance expert at Wealth of Geeks, explained: “Your major indicator to consider acting on your house-buying plans is when the Bank of England does decide to lower the rates, which may happen as soon as this summer.

“So it is wise to have a solid plan ready for when that day comes. A financial advisor or broker will be able to tell you exactly when the right time for you is, based on your personal circumstances.”

The central bank’s Monetary Policy Committee (MPC) will next meet to discuss potential changes to interest rates on March 21, 2024.

Source link

24World Media does not take any responsibility of the information you see on this page. The content this page contains is from independent third-party content provider. If you have any concerns regarding the content, please free to write us here: contact@24worldmedia.com