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Santander ups new business rates and Virgin raises SVRs – round-up

  • 07/07/2022
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Santander ups new business rates and Virgin raises SVRs – round-up
Santander has increased its new business mortgage rates by up to 0.7 per cent and has removed £250 cashback on 11 selected purchase products.

Santander is also temporarily removing selected two and five-year fixed new business purchase and remortgage rates at 85 per cent loan to value (LTV) . There were four purchase products and four remortgage products with rates starting from 3.14 per cent.

Buy-to-let rates will rise by 0.70 per cent, with examples including its fee-free two-year fixed remortgage at 60 per cent LTV going up to 4.09 per cent. 

Its two-year fixed buy-to-let purchase and remortgage product at the same LTV tier has increased to 3.79 per cent. It comes with a £1,499 fee.

In its residential range, Santander has upped rates by 0.65 per cent on its purchase mortgages between 75 and 95 per cent LTV. 

This includes a two-year fixed rate at 90 per cent LTV, which is now priced at 3.89 per cent. Its five-year fixed rate at the same LTV tier stands at 4.09 per cent. Both come with a £999 fee and £250 cashback has been removed.

Santander’s remortgage products between 75 and 90 per cent LTV have risen by as much as 0.65 per cent. Its two-year fixed rate at 75 per cent LTV with a £999 fee and its five-year fixed rate equivalent is 3.84 per cent. 

On the purchase and remortgage side, rates have also gone up by around 0.65 per cent. Its large loan two-year fixed rate at 70 per cent LTV with a £2,499 fee is 3.89 per cent.

The lender has increased rates for new build products between 75 and 85 per cent LTV. This includes a two and half-year fixed rate at 75 per cent LTV which is priced at 3.74 per cent and comes with a £999 fee.

On the Help to Buy side, rates have also risen by around 0.65 per cent. Its two and a half-year fixed rate at 75 per cent LTV with £999 fee is 3.79 per cent and £250 cashback has been removed.

The lender’s residential and buy-to-let product transfer fixed rates are going up by around 0.45 per cent, while selected residential tracker rates are increasing by 0.25 per cent. Santander said that product transfer rates were personalised to each customer.


Virgin Money raises buy-to-let variable rate and SVR

Virgin Money said that, following the Bank of England’s decision to raise the base rate to 1.25 per cent last month, it had increased its residential SVR to 5.49 per cent and its buy-to-let variable rate to 5.69 per cent.

This is up from 5.24 per cent and 5.44 per cent respectively.

It added that its loyalty rate for residential customers who have a mortgage for seven years or more will go up from 4.99 per cent to 5.24 per cent.

Customers affected by the changes will be contacted, with the changes coming into force for new customers from 7 July and from 1 August for existing customers.

Clydesdale Bank’s residential SVR has risen from 5.24 per cent to 5.49 per cent and residential offset variable rate will go from 5.45 per cent to 5.7 per cent.

The buy-to-let revert rate and offset variable investment housing loan rate will increase from 5.85 per cent to 6.1 per cent.

Clydesdale Bank’s changes will come into effect for new customers and existing customers from 7 July.


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