Competition in the mortgage market is heating up as more and more lenders offer sub-4% mortgage deals, whether that be direct to customers or via their broker-only services.

On Friday, Your Money reported that both First Direct and Nationwide had launched sub-4% deals last week, joining the likes of HSBC, Halifax, Yorkshire Building Society and Virgin Money.

Now, both Santander and the Co-operative Bank have joined their rivals in releasing sub-4% products via their intermediary-only arms.

Santander goes under 4

In its residential remortgage-only range, decreases of up to 0.19% have been applied. This means that Santander’s five-year fixed rate at 60% loan to value (LTV) with £999 fee is now 3.99%.

The bank has also cut rates on a range of its other mortgage products. For example, its residential large loan purchase and remortgage deals have been cut by 0.2%. Its two-year fixed rate at 70% LTV with £2,499 fee now stands at 5.59 per cent.

The changes come into force on 21 February.

A platform for lower rates

Meanwhile, Platform, the intermediary mortgage subsidiary of The Co-operative Bank, has launched a range of mortgages with rates as low as 3.75%.

This follows reductions of up to 0.34% across its two and five-year fixes.

At 60% LTV, there is a five-year fix priced at 3.75% with a £1,999 fee and £250 cashback. The minimum loan size for this mortgage is £400,000. 

Another sub-4% option is the five-year fixed product, also at 60% LTV, with a fee of £1,499 and £250 cashback. This is priced at 3.85%. 

Darrell Evans, chief commercial officer at The Co-operative Bank, said: “We have been carefully reviewing our range of on sale mortgages since the start of 2023 and we are keen to support homeowners to get the best possible deal on their mortgage which is why we’ve announced competitive changes to our range.”

However, you will need to contact a broker to get either of these deals. It is also worth keeping in mind that a number of the new sub-4% deals are on long-term mortgages such as ten-year fixed rates, so there is a lot to consider (not just the tempting lower rate), as we explain in our article on the pros and cons of locking in for a decade.