Santander UK has reduced a selected fixed mortgage rates by up to 0.24% and launches new buy-to-let tracker products. Santander UK has today made reductions to selected fixed rates across its purchase, remortgage, and buy-to-let range.

It is also launching a range of new buy-to-let two-year tracker products, up to 75 per cent LTV. Examples of five-year fixed rates that have been reduced include 85% LTV five-year fixed rate residential purchase mortgage with no product fee is now priced at 4.79%, down from 4.89%.

Other examples are 90% LTV five-year fixed rate residential purchase mortgage with no product fee is now priced at 4.99%, down from 5.23%. Examples of two-year fixed rates that have been reduced include85% LTV two-year fixed rate residential remortgage with a £999 fee is now priced at 5.58%, down from 5.73%.

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Other examples are 90% LTV two-year fixed rate residential remortgage with a £999 fee is now priced at 5.78%, down from 5.94%. The new buy-to-let tracker range includes 60% LTV two-year tracker rate at 5.60% with a £1749 remortgage or purchase fee and 75% LTV two-year tracker rate at 5.84% with a £1749 remortgage or purchase fee.

Rachel Springall, finance expert at Moneyfactscompare, outlined why moving to a fixed rate deal could be “cost-of-effective” for mortgage holders. She explained: “Despite rising fixed rates, the incentive to refinance with a fixed rate mortgage is a sensible option when the average Standard Variable Rate (SVR) is over eight per cent.

“However, borrowers who will come off a two- or five-year fixed rate this year may be paying between 2.50 per cent and up to three per cent more in interest on their mortgage on average. Indeed, in April 2022, the average two-year fixed mortgage rate was 2.86 per cent, and in April 2019 the average five-year fixed mortgage rate was 2.88 per cent.

“Seeking advice is a wise choice to help navigate all the deals available and to work out which one would be the most cost-effective option.”