Santander has announced that it will be cutting its mortgage rates again, effective immediately, for the fourth consecutive week, this time by up to 0.25 per cent.
Santander mortgage rates have already been cut three times in as many weeks, by up to 0.5 per cent on one occasion, across its mortgage range, and today is no exception, with its fixed rate and tracker mortgages both getting a price reduction.
The Santander five year fixed rate mortgage has been reduced by up to 0.25 per cent, with the 70 per cent loan to value for homebuyers falling to 4.99 per cent, with free legal fees and £250 cashback upon completion, while remortgagers looking to borrow 70 per cent LTV can now get a rate of 5.15 per cent , with free legal fees and a few valuation.
By its rates, Santander has also created a range of what it refers to as 'market-leading' three year tracker mortgages, offering up to 75 per cent LTV at 3.09 or 3.14 per cent for purchase and remortgage respectively, both with no fee, or up to 70 per cent LTV at 2.54 per cent for purchase or 2.59 per cent for remortgaging.
According to the February Santander Remortgage Index, fixed rate mortgages are about to come back into fashion as a base rate rise becomes increasingly inevitable throughout 2010, with 59 per cent of people saying they would opt for a fixed rate when they remortgage.
Furthermore, the survey found that borrowers are looking for long-term security, not quick fixes, as 48 per cent said they would choose a five year fixed rate mortgage – almost twice as many as those who would fix for two or three years.
Commenting, Phil Cliff, director of Santander mortgages, said: "Once again, we are reducing the rates on our market-leading fixed and tracker mortgages. Our research shows that customer demand for longer term fixed rates has increased and we've responded by reducing the rates on our 5-year fixed deals."
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