Photo by Santander Increases Mortgage Rates by Up to 0.25%
Santander is set to introduce a suite of rate increases for both fixed and tracker deals across its residential and buy-to-let offerings. Effective from tomorrow, in its new business range, residential fixed rates will be increasing by between 0.04% and 0.20% for both purchases and remortgages.
Image: Mortgage Rates
In addition, all new business large loan fixed rates will be increased by 0.10% and all buy-to-let fixed rates by between 0.05% and 0.25%. In its product transfer range, Santander will be increasing residential fixed and tracker rates by between 0.04% and 0.20%, and selected buy-to-let fixed rates by between 0.05% and 0.25%.
“Hopes of a Spring reduction to Base Rate have disappeared and we are left facing uncertainty with the vast majority of lenders increasing their rates and shuffling products around on a weekly basis.” - Ben Perks, managing director at Orchard Financial Advisers
The rate increases are likely to trigger similar activity with other high street lenders, according to Justin Moy, managing director at EHF Mortgages. Katy Eatenton, mortgage and protection specialist at Lifetime Wealth Management, added that Monday mornings are starting to be the bearer of bad news, with rate increases becoming a common trend amongst lenders.
Mortgage Lenders
Gary Bush, financial adviser at MortgageShop.com, described the news as “miserable” for existing mortgage holders, first-time buyers, and landlords. Darryl Dhoffer, adviser at The Mortgage Expert, echoed the sentiment, stating that the rate increases are yet another roadblock for borrowers, which now seems a common trend amongst lenders.
“Another doom and gloom Monday as Santander announces hikes up to 0.25% on both fixed and tracker mortgage rates.” - Dariusz Karpowicz, director at Albion Financial Advice
Rohit Kohli, director at The Mortgage Stop, warned that other lenders will likely follow suit, as they look to protect margins. The rate increases are likely to have a significant impact on borrowers, making it even more challenging for them to secure affordable mortgage deals.
Mortgage Rates
The rate increases are a stark reminder of the uncertainty that pervades the mortgage market, with lenders constantly adjusting their rates in response to changing market conditions. As the mortgage landscape continues to shift, borrowers must remain vigilant and prepared for further changes ahead.
