Santander has announced an increase in mortgage rates, effective from 22 July, joining other lenders in adjusting their pricing strategies. This change is significant for borrowers, particularly first-time buyers and home movers, as it reflects ongoing shifts in the mortgage market.
How Are Santander’s Rates Changing?
Starting 22 July, Santander will implement rate increases across its mortgage offerings. Notably, the bank will introduce new 10-year fixed-rate mortgages aimed at first-time buyers and home movers, available across multiple loan-to-value (LTV) bands, including new builds. Additionally, new two- and five-year fixed-rate products will be launched for new build clients, featuring a £1,499 fee.
What Other Lenders Are Doing in the Mortgage Market?
In parallel, Accord Mortgages is also adjusting its rates. Fixed rates for residential mortgages up to 85% LTV will rise by up to 0.26%, while those at 90% LTV could increase by as much as 0.22% or decrease by 0.11%. Moreover, tracker rates will see changes of up to 0.03% up or 0.16% down. Buy-to-let (BTL) products will also experience rate hikes, with two- and three-year fixes increasing by up to 0.07% and five-year fixes by up to 0.09%.
What This Means for Borrowers
For borrowers, particularly first-time buyers and those looking to move, these rate increases signal a tightening mortgage market. Higher borrowing costs could affect affordability, making it essential for potential homeowners to reassess their options. It’s advisable for borrowers to stay informed about current mortgage rates and consider locking in a deal before further increases occur. Brokers should also be proactive in guiding clients through these changes.
Frequently asked questions
Why are mortgage rates increasing?
Mortgage rates are increasing due to a combination of market pressures and lender strategies to manage risk and profitability.
How can I find the best mortgage rates?
To find the best mortgage rates, consider using comparison tools or consulting with a mortgage broker who can provide tailored advice based on your financial situation.