Santander mortgage rates will fall below four percent – Irvine Times

The bank said the borrowers will be able to apply for one of the four new products as of Thursday, as it launches a range of two and five -year fixed interest rate transactions at 3.99%.

Eligible borrowers will need a 40% deposit to access tariffs below 4%, available for buying a house or review.

The creditor also reduces up to 0.40 percentage points for more than 80 other mortgage products from Thursday.

New deals include 60% LTV (loan to value) two or five -year fixed interest rates at 3.99% for housing buyers, with a fee of £ 1.999.

60% LTV two or five -year fixed interest rates at 3.99% are also available to homeowners who want to repair, with a fee of £ 1,749.

Other new deals include a home purchase mortgage for the purchase of 65% LTV with a two -year fixed rate at 4.35% with £ 1.749 or 4.89% without a fee.

This move follows a decrease in Bank of England’s base rate last week, from 4.75% to 4.5%, which nourishes hopes that competition between creditors to reduce mortgage rates may increase.

Santander UK also said on Tuesday that he registered a 130% increase in mortgage applications in the fourth quarter of 2024. Compared to the same period a year earlier, as some home buyers sought to potentially save thousands of pounds in costs Coat ofators.

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As of April, the gene discounts will become less generous, with the Zero rate group for buyers for the first time declining from £ 425,000 to 300,000 pounds and other home buyers seeing a discount of £ 250,000 to 125,000 British pounds.

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Rachel Springl, a financial expert at MoneyFactscomPare.co.uk, said: “It was only a matter of time for creditors to return less than 4% mortgages as a result of falling percentage.

“This is a positive injection for the mortgage market, and when a large lender makes such a move, it can encourage their peers to follow the example with their own cuts.

“Millions of mortgage borrowers who want to refinance this year need good news, so it is safe to say that there are high expectations for more creditors to compete in the price to lure new business in the coming weeks.”

David Holingvort, an associate director of L&C Mortgages, said: “These are the first standard high -quality lender tariffs that drop below 4% of last November and deals are available for both buyers and these repair.

“Improving the percentage of inflation last month and the recent reduction in interest rates seem to have reversed market anxiety as to whether the percentages may have to remain higher in a long time.

“This has been fed to the mortgage rate over the last week and emphasizes the gradual improvement of the market, as fixed rates begin to facilitate.

“These new percentages are certainly positive and the speed of the title is obliged to catch the eye.

“However, they come with a larger fee of 1.999 or £ 1,749 for purchase and repair respectively.

“Therefore, borrowers will have to keep their shark for them and make their sums to make sure they receive the best total value.

“With big loans, they will win the most from the low rate, while those with smaller mortgages are likely to be better served than a lower or no fee and a slightly higher interest rate.”

Nicholas Mendes of broker John Sharkol said: “Today he was observing noise from the lender’s repression, with many responding positively to the recent trend of decline and stabilizing the degree of the UAP.

“Although there remains a significant debate about the number of percentage reduction that we could see in 2025, the forecasts made at this stage of the year are often reviewed.

“New economic data and shifting global factors can significantly affect prospects.

“In addition, we still appreciate the full impact of a recent budget, which can take time to filter through the market.

“It is important to keep in mind that while projections offer useful guidance, they are often corrected as fresh information comes to light.”