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Santander increases fixed rates

ended 20. February 2024

Santander has just announced it is increasing all residential and Buy to Let fixed rates in the new business range from tomorrow, Wednesday 21 February — by up to 0.34%. This includes New Build and large loan exclusives for residential clients. It is also increasing selected residential and Buy to Let fixed rates in the product transfer range. There will be no change to tracker rates. Changes in screengrab, below. Newspage asked brokers for their views, bottom..

8 responses from the Newspage community

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Ranald Mitchell
Director at Charwin Mortgages
The optimism of early 2024 is rapidly dwindling as Santander make notable increases to their fixed rate pricing. It's bad news for the mortgage market, and with other lenders invariably following suit, bad news for mortgage borrowers. The road ahead is going to be less comfortable than many hoped for, at least until there are signs of inflation being brought under control.
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Akhil Mair
Director at Our Mortgage Broker
It's concerning to see Santander announcing these hikes. After witnessing a drop in rates in January, the reversal we've seen in February raises questions about the trajectory for mortgage borrowers moving forward. What will March bring amidst these fluctuations? The uncertainty adds another layer of complexity for those navigating the mortgage and property market.
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Ben Tadd
Director at Lucra Mortgages
These fixed rate rises across the board were expected given that Santander have been pricing so competitively. Based on swap rate volatility in recent weeks and a need to control their service levels, it's no surprise that Santander have pulled the trigger and hiked their rates. This will help ensure their mortgage underwriting can maintain the process timescales they strive for by slowing the flow of new applications being received. Nevertheless, it's not great news for borrowers and shows how volatile the market is.
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Justin Moy
Managing Director at EHF Mortgages
It was inevitable that Santander would follow the other High Street lenders, as they currently have some of the cheapest rates available in their quest for more market share. As has been said many times, rates will fall over time but there will be some bumps along the way before we get to those cheaper deals. Further falls in inflation and more pressure on the UK's economy will be needed to see rates fall again.
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Michelle Lawson
Director at Lawson Financial
Rate increases are sadly starting to be the norm again for now and this is unsurprising given the volatility in swap markets. The message to borrowers is act now and secure something before it goes. Any good broker will act and change products if a better rate comes out before completion, if time permits.
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Katy Eatenton
Mortgage & Protection Specialist at Lifetime Wealth Management
2024 started brilliantly with many rates in the low 4%s and even starting with a 3 for most high street lenders at lower loan to values. However, not even two months in and market confidence is diminishing rapidly. There needs to be a base rate reduction sooner rather than later to change the current course, which is ominous at best.
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Elliott Culley
Director at Switch Mortgage Finance
It is not surprising that Santander have made this move. They have been one of the most competitive lenders for rates over the past week or so and it is not sustainable for any mortgage lender to remain in this position for too long. Borrowers should remain optimistic as rates should continue to lower over the long term. Small bumps in the road are to be expected.
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Mark Robinson
Managing Director at Albion Forest Mortgages
Rates can increase for many reasons, whether due to shifting swap rates, which have been rising in recent weeks, or to control the number of applications they receive. If lenders don't control their application input levels, they can easily become overwhelmed and their service levels will quickly fall. But this highlights why people cannot become complacent that rates will continue to fall, and that the road ahead is set to be bumpy.