Santander Introduces Sub-4% Mortgage Rates as Market Competition Intensifies

The bank's new fixed-rate deals, starting at 3.99%, target borrowers with large deposits, marking a potential shift in mortgage trends.

Santander will launch four new fixed-rate mortgage products on Thursday, offering rates as low as 3.99% for two- and five-year terms.
The deals require a 40% deposit or equity and come with fees of £1,999 for purchases and £1,749 for remortgages.
The move follows a recent Bank of England base rate cut from 4.75% to 4.5%, prompting hopes for increased competition among lenders to lower rates.
Experts note the sub-4% rates are most beneficial for borrowers with larger loans, as the high fees may offset savings for smaller mortgages.
Santander's announcement coincides with other lenders like Lloyds and NatWest adjusting their rates, potentially signaling the start of a broader mortgage price war.