Santander follows HSBC with 5-year fixed rate mortgage at 2.99%

Santander has followed HSBC in announcing a five-year fixed rate mortgage at a rate of just 2.99 per cent if you have a loan-to-value ratio of 60 per cent.

Last week, HSBC released a similar product which is available to all qualifying customers with a similar LTV ratio.

The new products allow customers to combine the security of knowing what they will have to pay in mortgage repayments for five years, whilst still benefitting from a low rate.

The rate is only available to existing customers who have a current account with the bank or are miver1 customers.

The product also allows customers to add the product fee to the mortgage, saving upfront costs. The fee is £1,495.

Phil Cliff, Director of Santander Mortgages, said: "It's really exciting to be able to offer exclusively our existing current account and loyal mover customers such a low mortgage rate giving them peace of mind for the next five years.”