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"Landmark moment" as Santander launches sub-4% 2-year fixed rate for purchases

Journalist: Justin Moy, Contributing Editor

ended 15. September 2024

In a “landmark moment” for mortgages, Santander has just announced a sub-4% 2-year fixed rate for purchase up to 60% Loan to Value, starting Tuesday. A variety of other rate cuts and changes have also been announced. Newspage asked brokers for their views, below.

12 responses from the Newspage community

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Justin Moy
Managing Director at EHF Mortgages
Santander has watched on as multiple other lenders cut rates throughout the week and then trumped them all instantly. This launch of a sub-4% 2-year fixed rate is a landmark moment. Aggressive pricing will only intensify competition in the High Street over the coming months as they all scramble for market share. Most lenders have struggled to meet challenging targets this year so far. It may only be a 0.2% cut on their existing deal, but the shockwaves will be felt across the lending industry.
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Ben Perks
Managing Director at Orchard Financial Advisers
As the week came to a close, Santander slam-dunked the competition with the best 2-year rate on the market. Next week could be a great one for rate reductions as other lenders compete.
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David Stirling
Independent Financial Advisor at Mint Wealth
Santander sign off an impressive week of lender rate cuts, giving borrowers with larger deposits a massive smile to take into the weekend. Two-year sub-4% rates had been hotly predicted for the autumn but Santander held their position all week until Friday evening. They have now forced other banks to check themselves, so we can expect another week of competition for borrowers' business to come, which is fantastic news.
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Harps Garcha
Director at Brooklyns Financial
Friday the 13th just got a whole lot better. After a week of rate reductions, Santander has raised the stakes with a sub-4% offer on a two-year fixed rate. It’s exciting to see how this will shake things up and who will follow suit next week.
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Gabriel McKeown
Head of Macroeconomics at Sad Rabbit - Substack Newsletter
With a return of mortgage rates beginning with a 3, many will feel as though they’ve stumbled into a time machine and landed in 2020. The interest rate rollercoaster is picking up speed, and a mad dash to rock-bottom rates has begun with Santander leading the charge. This rate reduction spectacle, following a decline in swap rates, is throwing a lifeline to many who've been treading water in the sea of higher rates. This latest cut reflects a cautious optimism from lenders despite economic headwinds and may indicate a further loosening of lending conditions as we approach the end of 2024.
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Michelle Lawson
Director at Lawson Financial
A lucky end to Friday 13th with a sub-4% purchase rate from Santander. A good end to the week after a barrage of rate cuts. Promising for borrowers all round.
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Riz Malik
Independent Financial Adviser at R3 Wealth
Santander has thrown down the gauntlet with their new proposition. The product departments of the other lenders better have something up their sleeves otherwise Santander has just eaten their lunch. With interest rates expected to continue to fall, the rest of this year just got very busy.
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Craig Fish
Director at Lodestone Mortgages
It may be Friday the 13th, but this is anything but bad news. This is aggressive pricing and will really light the touch paper under the competition. As we enter the final quarter of 2024, fireworks will definitely be lighting up more than the night sky.
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Rohit Kohli
Director at The Mortgage Stop
This weeks ends in the same way that it started, namely with some stonking rate cuts that should have borrowers scrambling to secure them. It may be Friday the 13th but there’s nothing but good vibes from lenders today.
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Simon Bridgland
Director at Charwin Private Clients
Talk about start the weekend with a bang. Santander have broken the 2024 mould by offering the first sub-4% 2-year deal. Brokers had been anticipating this happening soon, and this really sets the tone for the coming weeks. Other lenders will without doubt follow swiftly with their own amendments, but Santander have won this week’s race by a nose on the lower loan-to-value products. The next milestone for lenders will be sub-4% at higher loan to values. I hope to see a sub-4% rate at 90% loan to value by the time the Budget comes around, although that could be wishful thinking.
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Elliott Culley
Director at Switch Mortgage Finance
Santander have taken the plunge and are first to release a sub-4% rate on a 2-year fixed deal. This is a significant milestone in the mortgage market as a 3% rate for a 2-year fixed has not been seen for a long time. The mortgage market recovery is in full swing and it will be interesting to see how other lenders react. There has been a flurry of activity this week and this is the cherry on top of the cake.
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Iain Swatton
Director at Exemplar Financial Services
In a game-changing move, Santander has announced a sub-4% 2-year fixed rate – a huge win for buyers. Previously, we’ve only seen lower rates on longer-term fixes, so this could be the start of a rate-cutting trend across the board. Could we see remortgage rates follow suit? With lenders vying for attention, this might just spark a full-blown price war, all to the benefit of homebuyers and homeowners alike. Exciting times ahead.