From Tuesday, Santander will increase its selected standard residential fixed rates across various products, including purchase, remortgage, and green products. These hikes will reach up to 0.29%. This change is part of a broader trend in the mortgage market, as lenders adjust their rates in response to shifting economic conditions. With these adjustments, borrowers looking to secure residential mortgages will face higher rates across the board.
In addition to the changes to residential fixed rates, large loan fixed rates will also see an increase, albeit by a smaller margin of up to 0.20%. This means that borrowers who require larger loans for properties or projects will no longer be able to take advantage of the lower rates that were available previously. This shift comes amid rising concerns over the outlook for interest rates and lending conditions in the coming months.
New-build fixed rates are set to rise as well, with increases of up to 0.26%. For those purchasing newly constructed properties, this could represent a significant change in affordability, especially in an already competitive housing market. New builds have traditionally been an attractive option for first-time buyers, but these rate hikes could make them less accessible for some.
Meanwhile, selected buy-to-let fixed rates are increasing by up to 0.31%. This rise could affect landlords who are looking to refinance their portfolios or secure new deals for investment properties. Buy-to-let investors have already faced a challenging market in recent years, and these new increases could add further pressure on their profitability, especially in the context of rising property prices and changes to rental demand.
Residential product transfer borrowers, those looking to move onto new fixed rates within their existing lender, will also see their rates increase. These transfers will rise by up to 0.26%, making it more expensive for existing customers to switch products. Similarly, landlords who are switching rates will face increases of up to 0.31%. Santander’s decision to raise rates comes after similar announcements from other major lenders, such as Clydesdale, TSB, and Virgin Money, which also increased mortgage pricing last week. The trend points to a tightening of mortgage conditions across the market, impacting both homeowners and investors alike.
In addition to the previously mentioned rate hikes, Santander is also increasing selected buy-to-let and green buy-to-let fixed rates by up to 0.31%. This will affect both new and existing landlords, tightening the availability of affordable borrowing for those looking to invest in the buy-to-let sector. With many landlords already facing increased operating costs due to changes in tax laws and other economic factors, these rate increases may lead to higher costs for those seeking to refinance or secure new financing for their rental properties.
Santander’s adjustments also include increases to residential product transfer rates. Specifically, selected residential fixed rates will rise by up to 0.26%, while selected buy-to-let fixed rates will see increases of up to 0.31%. These changes are likely to affect homeowners and investors who are looking to switch or renew their mortgages, potentially pushing up the cost of maintaining their existing mortgage deals or finding better terms. As the mortgage landscape continues to shift, those looking to remortgage may need to plan ahead to secure the best possible rates before the hikes take effect.
On a more positive note, there are also reductions for certain tracker rate mortgages. The pay rates on all new business and product transfer tracker rates are set to decrease by 0.25%. This reduction is directly linked to the recent decision by the Bank of England to cut its base rate from 5.00% to 4.75%. For those on tracker mortgages, this change will result in a slight decrease in monthly repayments, offering some financial relief in an otherwise challenging environment for borrowers.
In addition to tracker rates, Santander’s Standard Variable Rate (SVR) will also be reduced by 0.25%, bringing it down to 7.00%. For customers who are on the SVR, this cut provides a slight break in what has been a period of rising borrowing costs. Although the reduction may not significantly lower monthly payments, it will certainly help alleviate some of the pressure felt by those on variable rate mortgages, particularly as the cost of living continues to rise in the current economic climate.
For existing customers who are on base rate tracker mortgages—including those on follow-on rates or standard variable rates—Santander will reduce their rates by 0.25% from 3rd December. This reduction is aimed at providing further relief for those whose mortgage rates are directly tied to the Bank of England’s base rate, ensuring that their repayments are aligned with the most recent changes in the wider financial landscape. With these adjustments, customers may see a small but noticeable reduction in their monthly mortgage payments as the cost of borrowing decreases slightly.
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