From 4 November 2013, current account holders may apply for two-year fixed-rate mortgages with rates starting at 1.94% for a 60% loan-to-value product. The lender will also release a two-year tracker at 2.09% for loans of up to 70% LTV.
Santander for Intermediaries managing director Miguel Sard said: “Offering intermediaries and their clients simple and clear products which provide ongoing value demonstrates our commitment to our intermediary partners.”
The two-year fixed-rate 60% LTV and 75% LTV products come with a £995 booking fee of £995. The 85% LTV product has no booking fee. The tracker comes iwth a £495 booking fee. Applicants must have possessed a Santander current account for at least 30 days.
The products come with a variety of incentives, including 1% cashback for 1|2|3 current account holders.
According to Santander’s Q3 results, it has attracted 183,000 current account customers from other providers in the first nine months of 2013.
Moneyfacts financial specialist Rachel Springall said the deal reflected a market which favoured borrowers rather than savers.
She said: “At the end of the day when it comes to the current account business, when lenders get a customer to open a current account it opens up the chance to offer them a whole range of products.”
