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Santander pulls back on 60 and 85 per cent LTV new business lending

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  • 28/09/2022
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Santander pulls back on 60 and 85 per cent LTV new business lending
Santander will temporarily withdraw all 60 and 85 per cent loan to value products from its new business range and has made a raft of rate increases.

Around 27 products have been removed in total, including residential purchase only, Help to Buy, new build, residential remortgage, buy-to-let purchase and remortgage and buy-to-let remortgage only.

The lender said that most of its new business residential and buy-to-let-fixed rate deals would rise by 0.4 per cent and residential product transfer rates would increase by up to 0.3 per cent.

All buy to let and consent to let fixed rates on the product transfer side would rise between 0.2 and 0.3 per cent.

An example is its no-fee five-year residential purchase only fixed rate at 95 per cent LTV has gone up by 0.4 per cent to 5.09 per cent.

On the buy-to-let side, its purchase and remortgage five-year fixed rate at 75 per cent LTV with £1,499 fee has risen by 0.35 per cent to 4.54 per cent.

Pay rates for new and product transfer base trackers, including the follow-on rate, will go up by around 0.5 per cent to reflect the updated base rate.

The lender said that full mortgage applications had to received by 10pm yesterday to secure previous rates.

Several lenders have been temporarily withdrawing select new business fixed rate deals to reprice them due to the falling pound, soaring swap rates and base rate increase.

According to Moneyfacts, mortgage product choice contracted by around 300 between Monday and Tuesday this week.

Lenders said that new products would be released as soon as possible but did not have offer timelines for re-release.

Brokers said borrowers should act quickly to secure deals and have their documents prepared and ready.

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