The lender said the change in its residential mortgage affordability rates followed the Bank of England’s base rate cut earlier this month.
Santander said the updated calculations account for a lowering in residential mortgage affordability rates by 0.25% and updated household expenditure. The latter was not defined.
Brokers are encouraged to input client details into Santander’s mortgage affordability calculator to see how this may impact them.
Last week, Santander was the first high street mortgage lender to offer sub-4% mortgage rates this year, leading to several other lenders lowering their rates.
The bank has also made a raft of broker pledges, promising no dual pricing, a minimum of 24 hours’ notice of product withdrawals and an improved product transfer process.
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NatWest cuts select mortgage rates by up to 0.46%
NatWest will lower select residential, first-time buyer, shared equity, buy-to-let (BTL) and green mortgage rates from 0.28% from 20 February.
Within its core residential mortgage range, two- and five-year fixed purchase and remortgage rates will be reduced by around 0.28%.
This includes its no-fee two-year fixed remortgage rate at 90% loan to value (LTV) falling from 5.83% to 5.55%.
On the first-time buyer side, two- and five-year fixed rate purchase deals are being cut by around 0.15%.
An example includes its fee-free two-year fixed rate purchase deal with £250 cashback at 90% LTV, which will decrease from 5.35% to 5.2%.
In its shared equity range, rates will start from 4.35% in its residential range and 4.76% in its Help to Buy range.
BTL purchase and remortgage deals will be lowered by up to 0.46%. For instance, its two-year fixed rate remortgage with a £3,499 fee will go from 4.46% to 4%.
Green mortgage deals will fall by around 0.11% and begin from 4.15%, while BTL green mortgage deals will be lowered by up to 0.25% and will be priced from 4.52%.
TSB to reduces first-time buyer and homemover rates and tracker deals
High street lender TSB will reduce select residential mortgage rates by up to 0.2% from 19 February.
This includes two-year fixed first-time buyer and homemover deals up to 90% LTV, which will fall by up to 0.1%.
Two-year tracker first-time buyer and homemover products up to 75% LTV will be reduced by around 0.2%, along with two-year tracker remortgage deals.
Three-year fixed first-time buyer and homemover rates up to 75% LTV will go down by around 0.3%, while five-year fixed first-time buyer and homemover products up to 85% LTV will reduce by around 0.2%.
