Santander confirms new mortgage rule from Thursday that'll be 'mayhem'

After Barclays announced rate cuts of up to 0.2% earlier today, Santander has announced that, from Thursday 28 November, it is increasing selected residential and Buy to Let (BTL) fixed rates across its new business and product transfer ranges by up to 0.18 per cent.

It is also launching a new range of 2-year fixed rates for purchase customers borrowing up to £250,000. The move from Santander - which is rivalled by the likes of HSBC UK, NatWest, Nationwide, Lloyds Bank and more - comes ahead of Christmas.

Michelle Lawson, Director at Lawson Financial commented: "Welcome to mortgage market mayhem. Santander's announcement to raise rates after Barclays cut them earlier on Tuesday shows the radical flux in the mortgage market at present. Rates are going here, there and everywhere. The volatility shows that borrowers need to act and secure a rate and then let brokers monitor their mortgage for rate reductions."

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Ben Perks, Managing Director at Orchard Financial Advisers commented: "This is such a turbulent and unpredictable time for mortgage rates. The hope Barclays gave this morning has been cruelly snatched away by Santander this afternoon. Another bittersweet day for borrowers."

Iain Swatton, Director at Exemplar Financial Services commented: "Barclays cutting rates in the morning and Santander hiking theirs in the afternoon is the mortgage market equivalent of someone pouring you a cup of tea, only for the next person to take the biscuit away. While Barclays might be signalling optimism, Santander seems to be managing its popularity a little too well. For consumers, though, it’s a bewildering picture: are rates going up, down, or just playing a game of musical chairs? One thing’s for sure—navigating this market is as much about timing as it is about luck."

Justin Moy, Managing Director at EHF Mortgages commented: "Welcome back to the topsy-turvy world of mortgage pricing. One high street lender cuts fixed rates, another increases them not long after. This may reflect several factors, such as whether a lender is looking for business or perhaps turning the taps off to catch up on slower admin. Ultimately it's a mixed message to borrowers who will be confused by such announcements, and just shows the true value of using a mortgage broker, as timing can be so important to secure the best rates."

Dariusz Karpowicz, Director at Albion Financial Advice commented: "In what can only be described as the mortgage market's version of a seesaw, Barclays and Santander seem to be playing an entertaining game of "rate tennis". Just as Barclays serves up some delightful rate cuts of up to 0.2%, Santander returns with a cross-court shot of increases effective from this Thursday.

"Whilst these modest adjustments might leave both brokers and clients feeling a tad dizzy, there's a silver lining for house hunters with Santander's new range of two-year fixed rates for purchases under £250,000. The real picture of where the market's heading will only become clearer once other lenders show their hands. Until then, we'll all be watching this rather intriguing financial ping-pong match with keen interest."