For first-time buyers, all 85% to 95% LTV two-year fixed-rate mortgages will drop by as much as 0.28 percentage points

Santander UK will cut rates across a tranche of higher loan-to-value (LTV) residential mortgages from tomorrow reducing prices on products aimed at borrowers with smaller deposits, including first-time buyers and home movers.

For first-time buyers, all 85% to 95% LTV two-year fixed-rate mortgages will drop by as much as 0.28 percentage points. The revised range will start from 4.90%.

The lender is also lowering selected three- and five-year fixed rates, alongside changes to 10-year fixed products and tracker mortgages, across both first-time buyer and home mover propositions. Santander said the repricing forms part of broader adjustments to selected residential lines, including new-build exclusive products and large-loan offerings.

Within the home mover range, Santander will also reduce all 60% to 95% LTV two-year fixed rates by up to 0.28 percentage points, and cut tracker products by up to 0.25 percentage points. Similar reductions will apply to new-build products for both first-time buyers and movers.

The new rates will be available for applications made directly with the bank or through intermediaries, under Santander’s no dual pricing approach.

It’s natural that those looking to buy, move or remortgage in the current market may be feeling uncertain about what they should do next, said Ben Merritt, head of mortgage trading at Santander UK.

While the recent trend has been to see rates increase, we’re pleased that we’re able to pass on a reduction in borrowing costs following a fall in swap rates, he said.

He said: While no-one can accurately predict where the market will go next, taking professional advice on what’s possible from your lender or an independent broker, can help borrowers to make a decision based on the current market and what any movements mean for them specifically.