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Santander reduces rates - peak of the cycle?

ended 15. April 2026

From Thursday, Santander is reducing selected FTB and home mover fixed and tracker rates, plus BTL purchase fixed rates. In its product transfer range, it's reducing some residential and BTL fixed rates. There are no changes to residential or BTL remortgage rates or tracker rates in our product transfer range. Any thoughts on this, and whether it might represent the peak of the cycle following events in the Middle East or why you think Santander is reducing, send them across ASAP as writing this story now. Another angle is why do those remortgaging not get any of the rate joy. 

New business fixed rate reductions

·    FTB and home mover - selected fixed rates reducing by up to 0.28%.

·    Large loan - home mover - all fixed rates reducing by up to 0.12%.

·    BTL purchase - selected fixed rates reducing by up to 0.25%.

Tracker rate reductions

·    FTB and home mover - selected tracker rates reducing by up to 0.30%.

·    Large loan - home mover - all tracker rates reducing by 0.15%.

Product transfer fixed rate reductions

·    Residential - all 80% and 85% LTV 1, 2, 3 and 5 year fixed rates reducing by up to 0.19%. All 90% and above 90% LTV 1 and 2 year fixed rates reducing by up to
0.25%.

·    BTL - all above 75% LTV 2 and 5 year fixed rates reducing by 0.10%.

5 responses from the Newspage community

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Craig Fish
Director at Lodestone Mortgages
Santander's rate reductions are welcome, but let's be clear, this is a business decision, not a market signal. They simply weren't competitive enough to win new business at their previous rates, and this is them correcting that. Swap rates remain elevated and significantly higher than a year ago, so don't hold your breath waiting for other lenders to follow. This isn't a change in wind direction.
That said, right now is genuinely a buyers' market. Motivated sellers and thinner buyer pools means there are real bargains to be had for those who get off the fence and act. This is a good incentive to do exactly that. As for remortgage customers being left out, well lenders know those borrowers are already on their books and less likely to walk, so competitive pricing gets directed at new business. it's frustrating, but a commercial reality. These are tactical cuts, not a turning point but if you're buying, the conditions are working in your favour right now.
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Rohit Kohli
Director at The Mortgage Stop
I’d be very wary of saying we’ve hit the peak. Nothing has really changed. The war in the Middle East is still ongoing, Trump is still unpredictable, and there is no obvious sign that peace talks are getting anywhere. That is exactly why trying to call the next rate move is so risky. I also do not see this as a clear good news story on rates. Santander had pushed pricing up quite hard in recent weeks and had started to look out of step with parts of the market. This feels more like a reprice to get themselves back on the options list for brokers and borrowers, rather than a sign that rates are now firmly heading down. Remortgage borrowers will feel hard done by, because lenders are still showing more love to first-time buyers and home movers than to existing borrowers. It also tells you a lot about the market right now. We are now firmly in a buyer’s market, there is room for negotiation, and if you are a buyer in the right circumstances, there do look to be opportunities there.
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Darryl Dhoffer
Founder at The Mortgage Geezer
Santander’s recent move to trim mortgage rates might grab headlines, but it’s more of a strategic alignment than a market-shifting "wave." they are simply catching up with the pack rather than leading a charge of lower mortgage rates.
​The reality remains grimly anchored to geopolitics. With the Strait of Hormuz effectively closed since March, oil has surged As long as this vital energy artery is blocked, and the widespread reductions" many hope for will remain a mirage. Expect high street lenders to stay cautious until the global energy shock subsides.
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Harry Goodliffe
Director at HTG Mortgages
This could be the first hint that borrowing costs are nearing their peak and lenders may be gaining confidence. Reducing fixed and tracker products suggests improving conditions and a softer outlook on future interest rates. However, a lack of relief for remortgaging tells a slightly different story; lenders remain wary of the risk they already have on their books and are less motivated to compete for those customers. This looks less like a full market reversal, but a first small tentative step towards a more borrower-friendly market. Some much-needed welcoming news for buyers!
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Shaun Sturgess
Director at Sturgess Mortgage Solutions
This is a reprice in line with the wider market than the beginning of a reversal in rates and the peak. The situation in the Middle East remains too volatile for lenders to consider cutting rates in earnest for now. A huge and inflationary energy shock is still very real and lenders will be very alive to that fact.