"A bold move that we may see other lenders follow in the lead up to the Bank’s next rate announcement on 1 February."
- Kate Steere, housing expert at personal finance comparison site finder
From tomorrow, Santander is increasing selected standard residential fixed rates for purchase and remortgage clients.
Selected standard residential fixed rates are increasing by between 0.05% and 0.20% for purchase and remortgage clients.
As part of the changes, Santander is withdrawing all residential first-time buyer exclusive fixed rates with £500 cashback. A 90% LTV three-year fixed rate for purchase clients is also being withdrawn.
The bank confirmed that there will be no change to new business large loan exclusives, tracker rates, buy-to-let rates or the product transfer range.
Kate Steere, housing expert at personal finance comparison site, finder, commented: "While borrowers thought they may be able to breathe easy again, this move by Santander shows that they’re not out of the woods yet. Last week’s unexpected rise in inflation has called into question predictions that the Bank of England will cut the base rate at its next meeting.
"Santander isn’t waiting around to see and has pulled the trigger on its fixed rate mortgage rates. A bold move that we may see other lenders follow in the lead up to the Bank’s next rate announcement on 1 February."
