Santander cuts mortgage rates and extends availability

Santander has announced that it is to cut rates on some mortgage products by up to 0.35 per cent and make some of its best deals available to homeowners with less equity.

The lender has launched a new two-year fixed rate mortgage at 2.99 per cent for homeowners with a loan-to-value (LTV) ratio of 70 per cent, so the deal is available to more people as it was previously reserved for those with a 60 per cent LTV. It comes with a £995 fee.

The bank says it is to reduce rates on more than 30 of its mortgages and the majority of products are now available to borrowers with a 30 per cent deposit.

One of the new products is a two-year fixed rate mortgage for first-time buyers who have just a ten per cent deposit. The rate is 5.69 per cent with a £495 fee and a free standard mortgage valuation and £250 cashback.

For borrowers with a 20 per cent deposit, Santander offers a two-year fixed rate deal at 3.89 per cent with a £995 fee complete with homebuyer or remortgage solution package.

Its three-year fixed rate mortgage product has been given a rate cut of up to 0.35 per cent, down to 3.59 per cent for those with a 30 per cent deposit paying a £995 fee or you can choose a higher rate, 3.89 per cent with no fee.

Phil Cliff, Director of Santander Mortgages, said: "By reducing rates and increasing LTVs, we are doing our bit to help customers in tough market conditions. These new products are some of the lowest rates available from one of the major lenders in the UK."