Santander has just announced it is increasing all residential and Buy to Let fixed rates in the new business range from tomorrow, Wednesday 21 February — by up to 0.34%.
This includes New Build and large loan exclusives for residential clients. It is also increasing selected residential and Buy to Let fixed rates in the product transfer range. There will be no change to tracker rates.
Ranald Mitchell, director at Charwin Private Clients said, “The optimism of early 2024 is rapidly dwindling as Santander make notable increases to their fixed rate pricing.
“It’s bad news for the mortgage market, and with other lenders invariably following suit, bad news for mortgage borrowers.
“The road ahead is going to be less comfortable than many hoped for, at least until there are signs of inflation being brought under control.”
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Ben Tadd, director at Lucra Mortgages said, “These fixed rate rises across the board were expected given that Santander have been pricing so competitively.
“Based on swap rate volatility in recent weeks and a need to control their service levels, it’s no surprise that Santander have pulled the trigger and hiked their rates.
“This will help ensure their mortgage underwriting can maintain the process timescales they strive for by slowing the flow of new applications being received.
“Nevertheless, it’s not great news for borrowers and shows how volatile the market is.”
Justin Moy, managing director at EHF Mortgages said, “It was inevitable that Santander would follow the other High Street lenders, as they currently have some of the cheapest rates available in their quest for more market share.
“As has been said many times, rates will fall over time but there will be some bumps along the way before we get to those cheaper deals.
“Further falls in inflation and more pressure on the UK’s economy will be needed to see rates fall again.”
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