Product review: Santander fixed rates

Product review: Santander fixed rates

Santander has announced a range of fixed mortgages as well as its lowest ever two-year fixed rate available to remortgages.


Over recent months, mortgage lenders have had to compete in order to provide the best deals for mortgages, with bonuses attached.

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While these are the lowest ever rates for two-year fixed mortgages, according to the bank, they are still quite standard compared to other providers. The 95 per cent LTV mortgages are aimed at Help to Buy borrowers, but again, there is nothing too special about the deal, apart from the free valuation, which most providers now tend to offer.

However, the free legal fees are one add-on that is sure to interest new customers. When buying a house, legal fees can cost into the thousands, so it is one way to compete against other banks. Buying a house is not easy, particularly since the Mortgage Market Review, so providers are having to offer perks like this.

Not all banks or providers would offer this product extra due to the costs, but with mortgage approvals at their lowest since June 2013, consumer sentiment is understandably not at its highest.

The changes to stamp duty announced in the Autumn Statement in December, however, could start a flurry of activity in the mortgage market. So Santander offering rates lower than before may be a step in the right direction.