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Rate cuts and new products "show a great desire at Santander to support the homebuying market throughout the summer"

Journalist: Justin Moy, Contributing Editor

ended 01. May 2025

Santander UK has announced that, from Tuesday 6 May, it is introducing more than 50 new mortgage products to its range. The new products include 43 new build specific mortgages with a range of 60%-95% LTV, two and five-year fixed rates, as well as two-year tracker rates. Cashback of £250 is also being introduced for new build products from 85% LTV up to 90% LTV for first time buyers and 95% LTV for home movers. Rates start from 3.89%.

At the same time, the lender is introducing three-year fixed rate products and reducing interest rates across existing mortgage products including its home mover, first-time buyer, remortgage, buy to let and large loans range. 

Graham Sellar, Head of Santander for Intermediaries, said: “There’s a renewed focus on the new build market spurred on by the Government’s ambition to create 1.5 million new homes, in part through new towns. We’re pleased to bolster our new build offering, alongside new three-year fixes and broad reaching rate reductions, to support our brokers and customers access more options to help them on their homeownership journey.”

Research from Santander found that nearly three quarters of potential first time buyers (FTB) and more than half (57%) of next time buyers would consider moving to a new build property in one of the proposed new town sites. Within the industry, it claims more than four fifths (83%) of mortgage brokers believe that the new towns initiative will transform the homeownership market in the next 12 months. Newspage asked brokers for their views, bottom.

 

5 responses from the Newspage community

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Editor
Justin MoyVerified
Managing Director at EHF Mortgages
A significant number of new products and rate cuts show a great desire at Santander to support the homebuying market throughout the summer. These changes will also benefit those looking for a better deal on their remortgage or product transfer. With the cost of funds still in decline, this has allowed lenders to price at their lowest point for many years. Even though Stamp Duty has increased, with rate cuts coming thick and fast, and a desire to lend, you could argue it's the perfect time to buy.
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Emma JonesVerified
Managing Director at Whenthebanksaysno.co.uk
Lenders are clearly keen to get the market moving as we're seeing product innovation and better rates by the day at present. With the Bank of England widely expected to cut rates next week, and more cuts likely during 2025, things are looking far brighter for bricks and mortar.
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Katy EatentonVerified
Mortgage & Protection Specialist at Eatenton Finance
It's getting increasingly competitive on the mortgage front, which will be music to the ears of borrowers as we head into the early summer months, traditionally a busy time. If the Bank of England reduces the base rate next week, borrowers may be in for more good news.
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Ranald MitchellVerified
Director at bad credit mortgage specialists Charwin Mortgages
Santander have clearly done their homework and spotted a real opportunity to get money moving in a market that’s been stuck in second gear. By launching over 50 new products including a huge push into the new build space, they’re giving buyers and brokers the tools they need to act. The combination of competitive rates, cashback incentives, and flexible terms like three-year fixes shows they’re serious about unlocking demand and supporting the Government’s housing ambitions. This isn’t just a product refresh, it’s a strategic play to drive momentum across the mortgage market.
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Pete MuglestonVerified
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
Santander are showing their intent by offering 50 new products, which include some interesting deals. It's a clear sign that a rate war is underway, and it won't be a surprise if more lenders follow suit. Santander have firmly drawn a line in the sand and is staring the other major lenders down to see if they will join them or be left behind. This is all great news for borrowers, and it's likely we'll see the housing market heating up as we move into summer.