Santander is the latest lender to add a long-term fixed rate mortgage to its range with the launch of a ten-year deal.
The lender announced the product — available for purchase or remortgage at 2.49 per cent with a 25 per cent deposit and a £999 fee — today (May 29) alongside new incentives for first-time buyers and rate reductions.
Over the past year the industry has seen a growth in the number of 10-year products available and the number of lenders offering them.
In January 2019 14 providers offered such a mortgage compared with half that number in the year before, according to research from consumer champion Which?.
Which? also found the number of products in the market had increased by more than 50 per cent in the same period from 113 to 175.
Santander has also launched a five-year fixed rate deal at 2.49 per cent, which carries no product fee and is available for 90 per cent loan to value.
The lender is meanwhile offering a new £1,000 cashback incentive on three three-year fixed rate deals for first-time buyers — available at 80, 85 and 90 per cent LTV and at 2.24, 2.39 and 2.99 per cent respectively with no product fee.
It has also unveiled rate reductions of up to 0.20 percentage points across seven of its two-year and five-year fixed rate products, with LTVs ranging from 85-95 per cent.
Miguel Sard, head of mortgages at Santander Mortgages, said: "We know that customers looking at higher LTV borrowing can be faced with challenging interest rates.
"Whether you are a first-time buyer looking for a mortgage that gives you a little something back, or an existing home-owner looking to remortgage, we hope that our updated products will help make your home ownership dreams possible."
David Hollingworth, director at L&C Mortgages, said: "It’s really good to see Santander keeping things fresh with some new additions.
"The 10-year fixed rate market is one that only seems to attract a relatively small amount of business but for those borrowers keen to lock their rate in for the long term, the choice is substantial now.
"The first-time buyer products tick a lot of boxes with no fees and a £1000 cashback only adding to the appeal of the range of three year fixed rates, that stand up very well on rate and offer an excellent overall package."
imogen.tew@ft.com
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