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"Slam dunk" from Santander as it goes sub-4% on 2-year and 3-year fixed rates

Journalist: Justin Moy, Contributing Editor

ended 16. April 2025

Santander has just announced a wave of rate cuts for all types of mortgage borrowers, including improvements to existing borrowers looking for a new deal. Headline rates include sub-4% options for homemovers, for 2-year and 3-year fixed deals. As one of several lenders repricing this week, Newspage asked brokers if there is still potential for a mini rate war on the high street. Views below.

 

6 responses from the Newspage community

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Andrew Montlake
CEO at Coreco
This is a slam dunk from Santander. Not only are rates getting ever more competitive, but we're also seeing great affordability improvements as lenders innovate. Though the stamp duty deadline is behind us, there's life in the property market yet if lenders as big as Santander keep cutting rates like this.
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Justin Moy
Managing Director at EHF Mortgages
Santander has taken the opportunity to help nearly every type of lender with this long list of rate cuts, included sub-4% deals for homebuyers. First-time buyers will appreciate the deeper cuts of up to 0.21% and this, coupled with the recent improvements in affordability, bring home ownership more within reach.
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Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
This is fantastic news for borrowers and may indicate that lenders think a base rate cut is on the horizon. When a lender like Santander makes a move, others tend to follow so watch this space. A lot is riding on Wednesday's inflation data.
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Riz Malik
Independent Financial Adviser at R3 Wealth
Lenders have roared back to life this week, cutting fixed rates as market expectations shift. Volatility from the US, particularly thanks to Trump, has reignited rate cut bets, giving lenders the confidence to compete more aggressively on fixed rate pricing. Expect this trend to continue if uncertainty lingers.
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Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
This is more great news for borrowers, and it looks like we could indeed be seeing a rate war play out on the high street. This will be particularly welcome given the recent increases in Stamp Duty thresholds and should help to heat up the market going into the summer. The question is whether this is the starter, with the main to follow as other lenders start to cut rates, too. If the Bank of England cuts the base rate in May, that would be the cherry on top of a very large dessert.
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Sean Horton
Managing Director at Respect Mortgages
Sub-4% mortgage rates returning shows lenders are keen to compete, despite market jitters over (unjustified) US tariffs.

Santander's move follows similar cuts from Barclays and HSBC, giving borrowers some welcome breathing space.

The high street pricing battle is gaining momentum, though some borrowers understandably remain cautious given recent market turbulence.

Many are sitting on their hands, worried about committing amid economic uncertainty.

These headline rates are more of what we need but with the keenest rates needing a 40% deposit, it won't be within reach of most first-time buyers.

We are looking for the Bank of England to trim base rates again next month, with lender's repricing rates down again.