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Santander updates affordability rates; Natwest increases FTB cashback and adds fee-free deals – round-up

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  • 28/04/2022
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Santander updates affordability rates; Natwest increases FTB cashback and adds fee-free deals – round-up
Santander has made changes to its residential and buy-to-let affordability rates to reflect the March Bank of England base rate increase.

At the last Monetary Policy Committee meeting, the base rate rose to 0.75 per cent. 

Santander’s residential affordability rate is three per cent above its standard variable rate (SVR) which is set to rise from 4.74 per cent to 4.99 per cent at the beginning of May. 

A spokesperson for the bank said: “We have adjusted our stress rates to account for March’s increase to the Bank of England base rate and, in line with our obligations as a responsible lender, ensure that the mortgage will be affordable to the customer in the longer term.”

 

Natwest

Natwest has increased the cashback available on its mortgages for first-time buyers, launched fee-free products and upped rates on some of its deals.

Cashback has risen from £750 to £1,000 on 85 and 90 per cent loan to value (LTV) purchase products fixed for either two or five years.

Rates have also increased by as much as 0.12 per cent, starting from 2.78 per cent for a fee-free product at 85 per cent LTV, a 0.05 per cent change. Meanwhile, a fee-free deal at 90 per cent LTV has a rate increase from 3.17 per cent to 3.22 per cent.

Added fee-free products include shared equity mortgages at 60 and 75 per cent LTV, fixed for two and five years. Rates vary from 2.7 per cent to 2.79 per cent. Fee-free options have also been added to the help to buy, and buy-to-let ranges, also at 60 and 75 per cent LTV, fixed for either two or five years.

For residential and buy-to-let borrowers switching rates, two and five-year fixes between 60 and 90 per cent LTV have been pulled and replaced by products with higher rates.

Residential switch rates between 60 and 90 per cent LTV, fixed either for two or five years have risen by as much as 16 basis points.

Rates on the 95 per cent LTV mortgage guarantee scheme products have increased by 0.11 per cent for the two-year fix to 3.2 per cent, and by 0.12 per cent for the five-year fix to 3.22 per cent.

Changes come into effect from 29 April. Mortgage illustrations can be produced and online applications can be submitted until 10.30pm 29 April.

 

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