Santander has announced another reduction in its mortgage rates, cutting up to 0.2 per cent off the price of its fixed rate mortgage range.

Effective from today, Santander is cutting the cost of its two and five year fixed rate mortgages.

Commenting on the new rates, Phil Cliff, director of Santander Mortgages, said:  “As the ‘Home of UK mortgages’, we want to offer our customers competitive rates and a good variety of products and the latest changes to our range are no exception.”

The Santander two year fixed rate mortgage is now reduced to 3.19 per cent from 3.39 per cent, with up to 70 per cent loan to value and a £995 fee, for purchase only. This deal also comes with £250 cashback upon completion and a free valuation.

A two year fixed rate is also available to remortgage customers, at a rate of 3.29 per cent, down from 3.39 per cent, also up to 70 per cent LTV and with a fee of £995; this also comes with a free valuation and no legal fee.

The five year fixed rate mortgage has been reduced from 5.44 per cent to 5.25 per cent, offering up to 75 per cent LTV, with a fee of £799, available to all homebuyers.

This latest reduction follows a long succession of cuts in Santander mortgage rates as competition gradually returns to the mortgage market.

© Fair Investment Company Ltd