Santander has announced significant cuts to its mortgage rates and fees, effective from June 18, 2026. This move is particularly relevant for borrowers looking to take advantage of reduced costs across various mortgage products, which could lead to substantial savings.
TL;DR: Santander will reduce rates on many mortgage products; first-time buyers will see some rate increases on specific 85% LTV products.
What Changes Are Being Made to Mortgage Rates?
Starting June 18, Santander will implement rate cuts across much of its mortgage range. Most residential fixed rates in the product transfer category will see reductions. Additionally, all residential two-year tracker rates at 60% and 75% loan-to-value (LTV) will decrease. For two- and five-year fixed rates in the product transfer range, reductions will apply for 60% and 75% LTV options.
How Will First-Time Buyers Be Affected?
For first-time buyers, Santander is reintroducing fixed and tracker products at 60% and 75% LTV. However, there will be increases in rates for some 85% LTV two-year fixed-rate products. Specifically, the rate for the product with a fee and cashback will rise, while the rate for the zero-fee option will also increase. This could impact affordability for first-time buyers considering higher LTV options.
What This Means for Borrowers and Brokers
Borrowers should take note of the reduced fees, which will drop for standard products and large loans. These changes may enhance affordability and encourage more borrowers to consider switching or applying for new mortgages. Brokers must submit applications and product transfer requests for current products by the specified deadline to benefit from these adjustments.
Frequently asked questions
What should I do if I want to switch my mortgage?
If you’re considering switching your mortgage, ensure that your application is submitted by the deadline to take advantage of the new rates.
Are there any penalties for switching my mortgage?
Switching your mortgage may incur fees depending on your current lender’s terms, so it’s advisable to check your existing mortgage agreement for any potential penalties.