Copy article

Santander increasing mortgage rates

ended 21. July 2026

Santander is increasing its mortgage rates by up to 0.25%, full details here.

On Wednesday 22 July, it is increasing fixed rates across its new range. It is also expanding its range with new 10 year fixed rates for FTB and home movers across multiple LTV bands, including new build. Plus, it's launching new 2 and 5 year fixed rates with a £1,499 fee for new build clients.

In our product transfer range, it is increasing most residential and BTL fixed rates.

There are no changes to tracker rates in our new business or product transfer ranges.

Its product transfer fixed rate increases include: Residential - all 1, 2, 5 and 7 year fixed rates increasing by up to 0.20%. BTL - all 60% and 75% LTV 2 and 5 year fixed rates increasing by up to 0.25%.

  • What's your reaction to Santander increasing its mortgage rates? Why are they raising rates?
  • What does it say about the economy? What advice do you have for people about locking in a mortgage in this climate?
  • Is a 10-year fixed rate unusual? Is it a good idea?

Responses by tonight please.

6 responses from the Newspage community

Copy all

Star Quote
Copy

Editor
Matt Coulson
Founder at Heron Financial Ltd
Five major lenders have repriced inside 24 hours, which shows how quickly the Middle East conflict can impact the monthly mortgage payments of UK homeowners. To be fair to Santander, they're giving at least 24 hours' notice here. A lot of the recent repricing has been same-day, and when you're mid-advice that difference matters more than the 0.25% does. On the 10-year fixes, longer terms get discussed every time we get a shock like this, and they're the norm in the US and much of Europe. UK uptake has been low every time they've been offered. What I'd want to know is whether shocks arriving this frequently start to change that. My instinct is that British borrowers have always treated a fix as a short-term hedge rather than a view on the next decade, and that habit is what would have to shift.
Copy

Editor
Michelle Lawson
Director at Lawson Financial
Santander have been the latest to hike rates today with undoubtedly more to follow. Turmoil at home and abroad is starting to bite again with borrowers bearing the brunt again.
Copy

Editor
David Stirling
Independent Financial Adviser at Mint Wealth
Santander joins what is now a full set, with five major lenders raising rates in the space of a day. This tells you everything about where the market is heading, at least for now. Swap rates have risen sharply on the back of oil price instability and renewed Middle East tension, and lenders are repricing accordingly. The brief window of sub-4% optimism has closed, and borrowers watching from the sidelines have had an expensive week.

On ten-year fixes: unusual, yes, but not without logic in the current climate. For buyers who want certainty above everything else, locking in for a decade removes the anxiety of remortgaging every two or five years through whatever chaos the world decides to serve up next. The trade-off is flexibility as life changes, and a decade is a long time to be married to a rate. For most borrowers, a five-year fix with a clear review point remains the more sensible bet, but the ten-year option is worth a conversation rather than immediate dismissal.
Copy

Editor
Justin Moy
Managing Director at EHF Mortgages
Santander didn't cut aggressively last time round, allowing them to wait a little longer before raising their rates. No lender wishes to stick its neck too far out from the rest of the mortgage providers, so this was inevitable. Not sure the longer-term deals will be that popular, what with the new 10yr fixed deals locking borrowers towards the top of the mortgage pricing, but many may be looking to remove that uncertainty too.
Copy

Editor
Jamie Elvin
Director at Strive Mortgages
Santander’s decision reflects wider market conditions rather than a bank-specific move. Lenders price mortgages based on the cost of funding, and recent rises in swap rates—driven by global uncertainty and higher government borrowing costs—have pushed funding costs up. As a result, we’ve seen several major lenders reprice in quick succession. It doesn’t necessarily signal that the Bank of England will raise rates again, but it does show markets expect borrowing costs to remain higher than many had hoped. For borrowers, if you have a purchase or remortgage coming up in the next few months, securing a rate sooner rather than later can provide protection while still allowing you to switch to a lower deal if rates improve before completion. The new 10-year fixed rates are unusual for the UK but make sense for borrowers who prioritise payment certainty over flexibility. For most people, a well-priced 2- or 5-year fix will still be the more appropriate choice, but the right answer depends on individual circumstances rather than trying to predict the market
Copy

Editor
Manooch Suree
Director at Zinga Financial Services
The increase reflects the wider pressures we’re seeing in financial markets, with geopolitical tensions and rising oil prices feeding into higher swap rates. However, while markets can move quickly, borrowers shouldn’t make rushed decisions. The right mortgage strategy is one that’s built around their long-term goals, not just today’s interest rate changes.