Santander bringing in 'landmark' change to accounts 'starting on Tuesday'

In a “landmark moment” for mortgages, Santander has just announced a sub-4 per cent 2-year fixed rate for purchase up to 60 per cent Loan to Value, starting Tuesday. A variety of other rate cuts and changes have also been announced.

EHF Mortgages expert Justin Moy said: "Santander has watched on as multiple other lenders cut rates throughout the week and then trumped them all instantly. This launch of a sub-4% 2-year fixed rate is a landmark moment. Aggressive pricing will only intensify competition in the High Street over the coming months as they all scramble for market share.

"Most lenders have struggled to meet challenging targets this year so far. It may only be a 0.2% cut on their existing deal, but the shockwaves will be felt across the lending industry." Mint Mortgage's David Stirling said: "Santander sign off an impressive week of lender rate cuts, giving borrowers with larger deposits a massive smile to take into the weekend.

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"Rates sub-4% had been hotly predicted for the autumn but Santander held their position all week until Friday evening. They have now forced other banks to check themselves, so we can expect another week of competition for borrowers' business to come, which is fantastic news for borrowers and brokers alike."

Brooklyns Financial's Harps Garcha said: "Friday the 13th just got a whole lot better. After a week of rate reductions, Santander has raised the stakes with a sub-4% offer on a two-year fixed rate. It’s exciting to see how this will shake things up and who will follow suit next week."

"With a return of mortgage rates beginning with a 3, many will feel as though they’ve stumbled into a time machine and landed in 2020," said Gabriel Mckeown, adding: "The interest rate rollercoaster is picking up speed, and a mad dash to rock-bottom rates has begun with Santander leading the charge.

"This rate reduction spectacle, following a decline in swap rates, is throwing a lifeline to many who've been treading water in the sea of higher rates. This latest cut reflects a cautious optimism from lenders despite economic headwinds and may indicate a further loosening of lending conditions as we approach the end of 2024."