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Santander announces rate cuts of up to 0.36% after the Budget

ended 31. October 2024

Late afternoon yesterday, Santander announced that, from tomorrow, Friday 1 November, it is reducing all residential and buy-to-let fixed rates across its new business and product transfer ranges by up to 0.36%. Given that the 10-year gilt yield hit a 5-year high and swaps edged up after the Budget, brokers said these reductions could soon be reversed.

One Ranald Mitchell, Director at Charwin Mortgages, commented: “With Santander’s rate cuts of up to 0.36% on fixed mortgages, lenders are clearly competing despite a volatile market. The spike in 10-year gilt yields post-Budget signals underlying uncertainty, so these reductions may be short-lived if conditions shift. For new borrowers, now may be the time to lock in a favourable rate, as mortgage prices could fluctuate in the weeks ahead.”

Ben Perks, Managing Director at Orchard Financial Advisers, added: “Swap rates took an initial uptick yesterday in the immediate aftermath of the Budget and all eyes will be on them today. The reductions from Santander will have been priced in ‘pre-Budget’ and it’s encouraging that nothing they heard yesterday deterred them. As long as swap rates don’t rocket skyward, more lenders should reduce over the coming weeks.”

Additional comments below.

7 responses from the Newspage community

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Ranald MitchellVerified
Director at bad credit mortgage specialists Charwin Mortgages
With Santander’s rate cuts of up to 0.36% on fixed mortgages, lenders are clearly competing despite a volatile market. The spike in 10-year gilt yields post-Budget signals underlying uncertainty, so these reductions may be short-lived if conditions shift. For new borrowers, now may be the time to lock in a favourable rate, as mortgage prices could fluctuate in the weeks ahead.
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Kelsey PhillipsVerified
Head of Specialist Lending at Arose Finance
Gilt yields and mortgage rates continue to fluctuate as the dust settles following the Austerity Budget. Santander were among the first to react with cuts while Virgin went the other way. This divergence suggests we will not see a normalised rate environment until after the market has clarity on the US election and the Monetary Policy Committee decision during the next 2 weeks.
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Simon BridglandVerified
Director at Charwin Private Clients
Santander may have set the temperature for the remainder of the week, helping to soothe the pain felt by many after yesterday’s budget, with mortgage borrowers reaping the rewards of up to a hefty 0.36% reduction if used on a new build purchase. Borrowers that the chancellor would like to see sitting comfortably in one of the 1.5 million new build houses she so desperately need to get built. Once the dust has settled on yesterday's shenanigans, we’re likely to be left with a bitter taste in our mouths, wondering what the hell the nation has just been fed.
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Tony CastleVerified
Managing Director at PFG Mortgages
Santander were quick to show their hand yesterday with some sizeable reductions in rates. This will be a welcome move for homeowners and investors. Following the Budget all eyes will be on 7th November to see if the base rate is reduced further, which will keep mortgage rates on downward trend.
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David StirlingVerified
Independent Financial Advisor at Mint Wealth
Santander are flying into the wind from tomorrow and offering borrowers some respite from the last few week of turbulence in the mortgage rate market. The reality of yesterday's Budget may not yet have hit home and next week we see the US election and the Bank of England make their decision on interest rates, so I can't help feel that we are still in for a bit of a rocky ride over the next few months. Santander have priced competitively to suck up some quick business before we buckle up for turmoil in the run-up to the festive period, so borrowers should get onboard while they can.
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Ben PerksVerified
Managing Director at Orchard Financial Advisers
Swap rates took an initial uptick yesterday in the immediate aftermath of the Budget and all eyes will be on them today. The reductions from Santander will have been priced in ‘pre-Budget’ and it’s encouraging that nothing they heard yesterday deterred them. As long as swap rates don’t rocket skyward, more lenders should reduce over the coming weeks.
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Katy EatentonVerified
Mortgage & Protection Specialist at Eatenton Finance
This is welcome news from Santander, especially when the market is still so volatile. Hopefully the reductions won’t be short-lived and we don’t get a email next week reversing the reductions. This may be to attract new business rather than because the market is improving.