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Santander reducing first-time buyer mortgage rates

ended 02. March 2026

Santander is cutting first-time buyer (FTB) mortgage rates on Wednesday, it has announced.

On Wednesday 4 March, Santander said it is going to reduce its higher Loan to Value (LTV) FTB fixed rates again, with 85% and 90% LTV rates going under 4%.

Plus, the £10k deposit My First Mortgage fixed rate is going down to 4.99%. Most other residential and Buy to Let (BTL) fixed rates are also going down with some lower LTV two-year fixed and tracker rate increases for residential home movers and remortgages of up to 0.16%.

Santander is withdrawing a residential 60% LTV two-year fixed rate plus reducing most other residential and BTL fixed rates.

  • What is your response to Santander's product changes?
  • Is this going to be derailed by swap rates going up and will Santander be forced to raise rates in the coming weeks anyway?
  • Other thoughts?

Responses this evening please.

Full details below:


2 responses from the Newspage community

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Editor
Justin Moy
Managing Director at EHF Mortgages
This shows that for most lenders, the decision to change pricing could be made up to a week beforehand, so if this creates a small window of opportunity, it may be worth jumping on before prolonged Middle East troubles cause a rate increase. The 2yr deal withdrawal is nothing more than a product transfer with a huge fee. I suspect that has been an unpopular option for existing clients, and other retention deals are reduced anyway, so it's a good move by the lender to remove. Overall, some good news for most borrowers, but don't be surprised if these disappear quickly, as lenders watch rising Swap rates with cautionary eyes.
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Editor
Ken James
Director at Contractor Mortgage Services
Santander cuts First-Time Buyer Rates, But is the door already Closing?Santander has announced a fresh round of mortgage rate cuts for first-time buyers, reducing its higher Loan to Value fixed rates, with 85% and 90% deals now dipping below 4%. Its £10,000 deposit My First Mortgage product has also been cut to 4.99%, in a clear move to stimulate activity at the entry level of the market. At face value, this is a strong signal of intent. Sub-4% rates at higher LTVs are psychologically important and will undoubtedly grab attention among buyers who have been waiting for an opportunity to step in. For first-time buyers in particular, this represents a genuine opening to secure competitive pricing with smaller deposits However, the bigger question is timing. Swap rates have been edging upwards in reaction to escalating tensions in the Middle East, and markets are repricing risk accordingly. If that upward pressure continues, lenders may struggle to sustain aggressive pricing.