Santander slashes fixed-rate mortgage interest rate under 4%

Santander Bank UK has announced that it will be reducing its fixed-rate mortgage interest rates, with some rates dropping below 4%.

The move comes as the Bank of England is widely expected to raise interest rates again in the coming months.

Santander's new fixed-rate mortgage rates will be available from 12 July 2023, and will apply to both new and existing customers.

The two-year fixed-rate mortgage rate will be reduced from 4.29% to 3.99%, while the five-year fixed-rate mortgage rate will be reduced from 4.49% to 4.29%.

Santander is also offering a new ten-year fixed-rate mortgage, with an interest rate of 4.79%.

Santander's head of mortgages, Matthew Rust, said: "We are pleased to be able to offer our customers even lower fixed-rate mortgage rates. These new rates provide our customers with certainty and peace of mind about their monthly mortgage payments for the next two, five or ten years."

"We believe that these new rates will be attractive to both first-time buyers and existing homeowners looking to remortgage."

The move by Santander is likely to put pressure on other lenders to reduce their fixed-rate mortgage rates.

In recent months, a number of lenders have increased their fixed-rate mortgage rates in anticipation of further interest rate rises from the Bank of England.

However, Santander's decision to cut its fixed-rate mortgage rates suggests that the market may be starting to turn in favor of borrowers.

If you are considering taking out a fixed-rate mortgage, it is important to compare the rates offered by different lenders to find the best deal.

You should also consider the length of the fixed-rate period, as well as the fees and charges associated with the mortgage.