You are here: Home - Mortgages - First Time Buyer - News -

No end to mortgage rate war as Santander unveils lowest ever five-year fix

Written by:
Santander has launched its lowest ever five-year mortgage deal.

The 1.49 per cent rate is available to both purchase and remortgage customers with a 40 per cent deposit in branch, by phone, online or through a broker.

Rachel Springall, finance expert at Moneyfacts, says the deal is the current market-leader for direct customers as it beats the previous cheapest deal, which was 1.53 per cent from Skipton Building Society.

However, borrowers can access a lower five-year rate – 1.45 per cent from Skipton – if they go through a broker.

Santander has also slashed a range of two-year and ten-year fixed rate products.

Remortgage customers with a 40 per cent deposit can now get a market-leading two-year fix at 1.15 per cent – but this deal is available online only. It pips the Natwest Intermediary Solutions offer of 1.19 per cent and beats the next best direct deal from Barclays Mortgage at 1.21 per cent.

The ten-year fix – available to purchase and remortgage customers with a 35 per cent deposit – has been cut by 0.15 per cent to 2.34 per cent.

All new rates are available from 22 October.

Commenting on the cuts, Springall said: “This latest move by Santander just goes to show that the mortgage rate war isn’t over. As one of the biggest mortgage brands in the country, these latest market-leading direct deals will not only appeal to new borrowers, but also those looking to remortgage.

“As we near the end of 2019 it could well be the case that Santander is monitoring their lending targets and is revamping its range to entice borrowers. It’s important that lenders not only attract new blood, but also retain their mortgage book and it is entirely possible that other lenders may react to this latest launch to improve their own range.

“All in all its good news for mortgage customers hoping to lock into a competitive rate amidst economic uncertainties.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

Your rights for refunds if travel is affected by strikes

There have been a wave of strikes this year across many different industries, and more are planned over Christ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week