Santander drops rates on fee-free remortgages

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Santander drops rates on fee-free remortgages

Santander has launched market-leading fee-free fixed rate remortgages and unveiled an exclusive online deal.

The lender’s two-year remortgage fixes are now available at 1.39 per cent to 60 per cent loan-to-value (LTV), 1.44 per cent to 75 per cent LTV and 1.69 per cent to 85 per cent LTV.

Five-year fixes are down to 1.79 per cent at 60 per cent LTV, 1.94 per cent at 75 per cent LTV and 2.29 per cent at 80 per cent LTV.

The deals, which are available direct and via intermediaries, come with free valuation and a choice of free legals or £250 cashback.

Santander’s two-year fixed rate online exclusive remortgage deal is available at 1.09 per cent to 75 per cent LTV, with a £1,499 product fee.

An analysis by Moneyfacts confirmed the rates offered by Santander are the lowest remortgage rates without a fee offered by the high-street lenders.

Miguel Sard, managing director of mortgages at Santander UK, said: “These new products are designed to support customers looking to remortgage and lock in to a lower rate. Not only are they market leading, they also come with the added benefit of having no upfront product fee.”

Competition in the remortgage sphere has been hotting up as the biggest maturity period in five-years – accounting for £35bn-worth of products, according to CACI - gets underway in September and October.

Other lenders such as Accord and Aldermore have recently boosted their remortgage products to compete for new business.

Rebecca Robertson, director and financial planner at Chatham-based Evolution for Women, commented: “It is great for lenders to have some of these cracking products available, and we can get people moving off standard variable rates.

“We have clients on bank base rate plus 1.5 per cent at the moment. You would think with Brexit there would be more people looking to move, but often it is done in a panic when base rates are starting to move.

“Santander are trying to move the market forward. I think lenders need to, because people are not motivated to move otherwise.”