23 Oct 2019
Mortgage Rivalry Continues as Santander Launches Lowest Ever 5-Year Rate
Santander UK has introduced their lowest ever five-year fixed-rate mortgage deal, overtaking Skipton Building Society’s 1.53% rate.
The new deal was launched this week and is available at 1.49% to both purchase and re-mortgage customers. A £999 fee applies and home-buyers must have a minimum deposit of 40%. New and reduced rates have also been released across the bank’s other products, including two-year and ten-year fixed rate mortgages.
Although Santander’s is the lowest direct deal, borrowers can still get a slightly better rate of 1.45% from Skipton Building Society if they go through an intermediary. However, customers who remortgage through Santander can now get a two-year fixed 1.15% deal, if they have a 40% deposit. This deal is only available online and beats similar deals by competitors.
Alongside its peers Nationwide and Lloyds, Santander is one of the UK’s leading mortgage providers. The new rates could therefore influence other providers who may launch similar deals in order to entice customers. This is great for borrowers, as Moneyfacts.co.uk Finance Expert Rachel Springall explains:
“This latest move by Santander just goes to show that the mortgage rate war isn’t over. As one of the biggest mortgage brands in the country, these latest market-leading direct deals will not only appeal to new borrowers, but also those looking to remortgage, who are maybe weighing up their options.
“All in all, it’s good news for mortgage customers hoping to lock into a competitive rate amidst economic uncertainties.”
However, as the mortgage wars wage on, other lenders whose products don’t match up may find themselves being pushed out of the market.
Earlier this year, Santander announced that they would be closing 140 UK branches. The decision was made as a result of more customers opting to bank online leading to in-branch transactions falling by 23% over a three-year period.