Santander Cuts Interest Rates on Mortgages

What You Need to Know

Santander has announced that it is cutting interest rates on its mortgages. The move comes as part of a wider effort by banks to reduce borrowing costs in the wake of the global economic downturn. The rate cuts will take effect from 1st March 2023.

Fixed-Rate Mortgages

Santander is cutting interest rates on its fixed-rate mortgages by up to 0.5%. The new rates will start from 3.99% for a two-year fixed-rate mortgage and 4.49% for a five-year fixed-rate mortgage.

Variable-Rate Mortgages

Santander is also cutting interest rates on its variable-rate mortgages by up to 0.25%. The new rates will start from 3.49% for a two-year variable-rate mortgage and 3.99% for a five-year variable-rate mortgage.

What This Means for You

The interest rate cuts will mean that borrowers with Santander mortgages will see their monthly repayments reduced. The amount of the reduction will vary depending on the type of mortgage and the amount borrowed.

For example, a borrower with a £100,000 fixed-rate mortgage over 25 years would see their monthly repayments reduced by around £25. A borrower with a £100,000 variable-rate mortgage over 25 years would see their monthly repayments reduced by around £15.

The rate cuts are good news for borrowers who are looking to save money on their mortgage payments. However, it is important to remember that interest rates can change at any time. If you are considering taking out a mortgage, it is important to shop around and compare rates from different lenders.