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Santander Cut Rates on Residential and BTL

Journalist: Justin Moy, Contributing Editor

ended 05. September 2024

Santander has just announced a number of fixed rate cuts for both new and existing borrowers, by as much as 0.32%, in what appears to be a response to other high street lenders making cuts earlier this week. 

Newspage asked brokers for their views, below.

 

6 responses from the Newspage community

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Editor
Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
This is a great way to kick off September with at least six lenders announcing rate cuts this week. Let's hope this trend continues after the Autumn Budget, and we avoid a repeat of 2022. The next set of inflation data will be a key factor in what happens next.
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Iain Swatton
Director at Exemplar Financial Services
Santander’s decision to reduce their home loan rates, although slightly later than some of their competitors, is a welcome move that aligns with the broader trend of lenders making rate cuts. These reductions are beneficial for customers, potentially lowering monthly payments and making mortgages more affordable. This positive shift should help stimulate the mortgage market, encouraging more buyers and sellers to engage confidently. Ultimately, it’s a sign that competition among lenders is heating up, which can only be good news for borrowers.
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Justin Moy
Managing Director at EHF Mortgages
Santander are the latest lender to join in with a range of fixed rate cuts this week, matching the move by Barclays, NatWest and others. This is becoming a great time to secure a competitive deal before we have any backlash from the October Budget. Now could be a time to secure and survive, potentially.
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Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
Santander cutting mortgage rates, along with a host of other lenders, is a welcome boost for homeowners and buyers, lifting consumer confidence just as the economy shows signs of recovery. But with the Budget around the corner, Labour must tread carefully. Any sharp tax rises could undo this positive momentum and derail the housing market’s long-awaited progress. Let’s not risk stalling the recovery just as things are starting to look up.
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Gabriel McKeown
Head of Macroeconomics at Sad Rabbit - Substack Newsletter
The recent wave of mortgage rate reductions has served as a beacon of hope for borrowers navigating the stormy seas of high interest rates. Consequently, the race among lenders to offer the most attractive rates is heating up, and with reductions of up to 0.32%, Santander is not just dipping its toes but making a splash in the mortgage market. These across-the-board rate cuts reflect a cautious optimism despite economic headwinds and may indicate a gradual loosening of lending conditions as we approach the end of 2024. However, any further reductions in mortgage rates will depend on ongoing economic stability and future monetary policy decisions by the Bank of England. Therefore, borrowers should remain vigilant, as the reduction in rates by major lenders like Santander suggests a shift towards greater affordability for homeowners, potentially ushering in a new era of more favourable borrowing conditions.
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Simon Bridgland
Director at Charwin Private Clients
A healthy amount of reductions will keep the attention of borrowers eager for a deal. The lack of detail contained in their anouncement leads to a little frustration, but the facts are unlikely to provide any real market jolts given how out of line they are with other interest rate leaders, as the largest reductions are likely to be on the lowest loan to value borrowers.