santander cuts mortgage rates for borrowers starting tomorrow

Santander is set to reduce its fixed mortgage rates starting tomorrow, following similar moves by major banks like HSBC, Barclays, and NatWest earlier this week. The reductions will affect both new and existing borrowers, with rates decreasing by as much as 0.32 percentage points. This trend marks a return to mortgage rates not seen since September 2022, when Liz Truss became Prime Minister, indicating a shift in the lending landscape. The bank's new rates will see fixed rates for new customers drop by up to 0.27 percentage points, while buyers of new build properties will benefit from a reduction of up to 0.25 percentage points. Landlords will also see favorable changes, with fixed rates decreasing by up to 0.27 percentage points and product transfer rates falling by up to 0.23 percentage points. This is significant as product transfers allow borrowers to stay with their current lender without undergoing extensive checks. The decision to cut rates is viewed positively by industry experts, who believe it will stimulate the mortgage market by making home loans more affordable. Iain Swatton from Exemplar Financial Services noted that this move aligns with a broader trend among lenders, enhancing competition in the market. As a result, borrowers may find better deals and lower monthly payments. Overall, Santander's rate cuts are expected to encourage more buyers and sellers to engage in the housing market, reflecting a competitive environment that benefits consumers. This shift is crucial for those looking to refinance or enter the market, as it may lead to increased activity in the mortgage sector.