Santander’s new five-year fixed rate of 1.49% at 60% loan to value (LTV) is their lowest ever five-year deal, available direct to borrowers or through a broker.
For mortgage customers looking to lock into a longer-term rate amid economic uncertainties, it’s great news. The new deal overtakes the previous lowest rate from Skipton Building Society at 1.53%.
Currently the third-largest mortgage provider in the UK, Santander is ramping up the competition further with the launch of new two and 10-year fixed rate deals too. Their two-year fixed rate of 1.21% at 60% LTV is the joint-lowest rate on a mortgage that can be applied for directly by borrowers, while their 10-year mortgage offers a fixed rate of 2.34% at 75% LTV.
614% increase in the number of five-year deals
Moneyfacts.co.uk has reported that competition in the 10-year fixed-rate market is at its highest for 10 years. Compared to just 22 in August 2014, there are currently 157 fixed-rate 10-year deals available to borrowers. This immense increase in 10-year deals indicates that mortgage lenders firmly believe that demand for longer-term mortgages will continue to rise.
Rachel Springall, finance expert at Moneyfacts.co.uk, said: “This latest move by Santander just goes to show that the mortgage rate war isn’t over. As one of the biggest mortgage brands in the country, these latest market-leading direct deals will not only appeal to new borrowers but also those looking to remortgage, who are maybe weighing up their options.”
For mortgage customers seeking longer-term financial security, it’s all positive news, especially as other lenders are expected to follow Santander’s lead, intensifying competition even more notably within the 60% and 70% LTV tiers.
