Santander announced it would raise mortgage interest rates just days after the bank cut interest rates on its products. From today, the bank will increase interest rates by up to 0.20 percentage points on certain fixed rate products, making it the first major bank or building society to do so in 2024.
The bank is raising mortgage interest rates just days after reducing them last week
Photos of the Palestinian Authority
It is worth noting that Santander is withdrawing its exclusive mortgage deals for first-time home buyers in a blow to those trying to get on the property ladder.
- As a result, Santander has made the following changes to its mortgage deals:
- Select standard fixed residential rates increase between 0.05 percent and 0.20 percent for purchase and remortgage clients.
- All exclusive fixed rates are being withdrawn for first time residential buyers with £500 cashback.
- A three-year residential LTV of 90 percent of 5.18 percent is also being withdrawn at no product charge for purchasing customers.
Speaking to the news pageRohit Kohli, Director at Mortgage moratoriumHe warned that the housing market “will see some ups and downs” in the coming months.
He explained: “Inflation rose unexpectedly, albeit marginally, last week, giving lenders pause for thought, but a day or two later retail sales data for December was published and it was horrific, which will highlight the fragility of the economy to the Bank of England.” .
“The positive thing to take from all of this is that lenders are struggling to lend money after a bad 2023, but how long that will take is anyone’s guess.”
Over the 12 months to December 2023, CPI inflation jumped to four per cent.
A Santander spokesperson told GB News: “Santander continually reviews its rates based on a number of factors, such as wider market conditions including swap rates.
“We offer a range of competitive mortgage deals, with five-year deals starting from 3.99 per cent and two-year deals starting from 4.25 per cent.”
Last week, Santander announced it had cut mortgage interest rates by up to 0.45 per cent across its two-year fixed-rate product line.
The Office for National Statistics (ONS) will confirm the CPI inflation rate for the 12 months to January 2024 on 14 February 2024.