Santander has launched two new fixed rate mortgages with cheaper rates for its existing current account customers.

Customers of Santander current accounts, or Alliance & Leicester current accounts, can get exclusive mortgage rates to reward them for their loyalty, the bank announced this week.

Effective immediately, existing current account customers can access a new two year fixed rate mortgage at 3.19 per cent, with a fee of £995, up to 70 per cent loan to value.

Or, they can choose a five year fixed rate of 4.39 per cent, with a lower fee of £695, up to 60 per cent LTV.

Commenting on the new deals, Phil Cliff, director of Santander Mortgages, said: “As the ‘Home of UK mortgages’, we are keen to reward and reduce rates for existing customers where possible.”

He explained that the new five year fixed rate gives existing current account customers an “extremely competitive deal”, while the two year fixed rate offers a “great rate for those seeking a higher loan value.”

Mr Cliff reminds borrowers that while interest rates are currently at a record low, this will not last forever and mortgage rates will start to rise, so now could be the right time to fix.

“The cost of fixed rate mortgages could rise in the not so distant future so we are keen to remind borrowers that now is a good time to lock into a fixed mortgage while interest rates continue to remain historically low.”

He also added that it is not only existing customers that can benefit from the range of Santander mortgages on offer: “And of course, our loyalty range continues to be supported by our competitive mortgage deals for new customers,” he said.

© Fair Investment Company Ltd

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