Santander announces 'small but important' new rules for customers

Santander has threatened to kick start a mortgage rate "war" as it followed Halifax and NatWest in reducing its rates. The high street bank has confirmed new rates which brokers say will kick off a war among high street banks.

Stephen Perkins, Managing Director at Yellow Brick Mortgages, told Newspage: “This is Santander reacting to its competitors and joining the rate reduction party. The lender follows Halifax and NatWest who reduced their rates on Monday. This move from Santander has the potential to ramp up the rate battle between the UK's biggest lenders.

“Things are really hotting up now in the mortgage market." Katy Eatenton, Mortgage & Protection Specialist at Lifetime Wealth Management, said: “These cuts aren't breathtaking but the cumulative effect of lenders competing for market share is starting to show.”

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Andrew Montlake, Managing Director at Coreco, said: “Whatever happens in the General Election this week, borrowers look set to have more power in the months ahead.” Simon Bridgland, Broker/Director at Release Freedom, was unimpressed by the small cuts from Santander, which are only available on new purchases, describing them as “abysmal”.

“Any poor soul wanting a remortgage or existing Santander borrowers in need of a new deal will just have to stay on the higher existing rates,” he said. Justin Moy, Managing Director at EHF Mortgages, said: “This is another small but important rate cut from Santander.

“While buyers won't see a huge improvement in their monthly payments, all these little wins are adding up over time. The mortgage rate cut momentum is growing." Hannah Bashford, Director at Model Financial Solutions, was more optimistic saying: “Put your summer plans on hold, a rate war seems imminent.

“The lead-up to the election is bringing a wave of optimism and potentially marks the beginning of good news for the mortgage market, with the prospect of rate reductions throughout the summer.”