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Santander Shakes Up the Mortgage Market with 50+ New Deals and Rate Cuts
Santander is making waves in the UK mortgage market, announcing over 50 new mortgage products and significant rate reductions, effective May 6th. This bold move aims to inject much-needed momentum into a market that's been somewhat sluggish. The changes impact a wide range of borrowers, from first-time buyers to home movers and those looking to remortgage.
New Build Focus and Cashback Incentives
A key aspect of Santander's strategy is a significant expansion of its new-build mortgage offerings. They're introducing 43 new mortgages specifically designed for those purchasing newly built properties. These deals are available as two- and five-year fixed-rate products, catering to buyers needing loans between 60% and 95% loan-to-value (LTV).
- Attractive Cashback: First-time buyers and home movers can benefit from a £250 cashback incentive on selected new build products (85% LTV to 90% LTV for first-time buyers, and 95% LTV for home movers).
- Meeting Housing Demand: Santander's research indicates strong interest in new-build properties, particularly among first-time buyers (almost three-quarters) and next-time buyers (over half).
This targeted approach aligns with the government's ambition to build 1.5 million new homes, a project that Santander clearly sees as a major opportunity. The initiative is also welcomed by mortgage brokers, who see it as a vital step in stimulating the housing market.
Broader Rate Reductions and New Three-Year Fixed Rates
Beyond the new-build focus, Santander is also reducing interest rates across its existing mortgage products. This includes its home mover, first-time buyer, remortgage, buy-to-let, and large loan ranges. The introduction of new three-year fixed-rate products adds further flexibility for borrowers.
- Savings for Borrowers: While the exact savings will vary depending on individual circumstances, early estimates suggest potential annual savings of over £25 million across Santander's customer base.
- Example Savings: A £200,000 mortgage on a typical two-year fixed rate could see monthly repayments drop by approximately £50 with the new lower rates.
Expert Commentary and Market Impact
Graham Sellar, Head of Santander for Intermediaries, highlights the renewed focus on the new build market and the bank's commitment to providing more options for homebuyers. Industry experts, like Ranald Mitchell of Charwin Mortgages, praise Santander’s strategic move, viewing it as a proactive approach to stimulate a previously stagnant market.
The introduction of these new mortgage products and reduced rates underscores Santander's commitment to supporting both brokers and customers in navigating the current housing market landscape. This significant investment is likely to have a positive ripple effect, potentially making homeownership more accessible for many.
Santander's Recent Branch Closures
It's important to note that while Santander is expanding its mortgage offerings, the bank recently announced the closure of 95 branches across the UK and reduced hours at 36 more. This decision, while separate from the mortgage news, reflects the ongoing shift towards online banking. However, Santander has committed to providing community banking services in affected areas to support those who still prefer in-person banking.
Conclusion
Santander's comprehensive mortgage overhaul, including the launch of 50+ new products and substantial rate cuts, represents a significant development in the UK mortgage market. The focus on new-build properties, cashback incentives, and broader rate reductions offers numerous benefits to a wide range of homebuyers. This move signals a proactive approach to revitalize the market and support the government's housing targets, while also highlighting the evolving landscape of banking services.
