Santander becomes first major lender to cut rates below 4% on two and five-year residential mortgages
11 February 2025
Santander UK has announced it will become the first high-street mortgage lender to offer a sub-4% mortgage in 2025. From Thursday 13 February, eligible customers will be able to apply for one of four new products as the lender launches a range of two and five-year fixed, 3.99%, residential purchase and remortgage rates, at 60% LTV.
The lender has also announced reductions of up to 0.40% on more than 80 other mortgages products, also live from Thursday. The raft of rate cuts impacts residential purchases, remortgages, new build purchases, as well as buy-to-let purchases and remortgages.
In addition to the new 3.99% residential products, the lender is introducing a new range of 65% LTV options on Buy-to-let (BTL) for purchase and remortgage customers, giving them more choice between 60% and 75% LTV.
Examples of the new products and rates include:
- Residential purchase - 60% LTV two and five-year fixed rate, 3.99% with a £1999 fee.
- Residential remortgage - 60% LTV two and five-year fixed rate, 3.99% with a £1,749 fee.
- BTL purchase – 65% LTV:
- two-year fixed rate, 4.35% with a £1,749 fee or 4.89% with no fee; and
- five-year fixed rate, 4.32% with a £1,749 fee or 4.59% with no fee. - BTL remortgage – 65% LTV:
- two-year fixed rate, 4.35% with a £1,749 fee or 4.89% with no fee; and
- five-year fixed rate, 4.25% with a £1,749 fee or 4.52% with no fee.
David Morris, Head of Homes at Santander UK, said:
“We’re delighted to launch a range of new products, along with rate cuts on our existing range, that will make a difference to customers across every stage of the home-buying journey. From prospective buyers looking to get on the ladder for the first time, to landlords in the buy-to-let market, we’re proud to offer competitive products that help our customers reduce the overall cost of their mortgage.”
