Santander UK announces its lowest ever five-year fixed-rate mortgage

Mortgage lenders’ battle to attract customers has been stepped up as Santander UK has launched its lowest ever five year fixed-rate deal.

The five-year house purchase and re-mortgage deal at 1.49% is available from Tuesday and carries a £999 fee.

Borrowers must have a 40% deposit to get it.

The bank has also announced new and reduced rates across a range of two-year, five-year and 10-year fixed rates products.

While Santander UK’s five-year deal is the lowest it has offered it is not the lowest currently available across the market, according to a financial information website.

Rachel Springall, a spokeswoman at Moneyfacts.co.uk, said Skipton Building Society has a five-year deal available through intermediaries at a slightly lower rate of 1.45%.

Ms Springall said: “This latest move by Santander just goes to show that the mortgage rate war isn’t over…

“As we near the end of 2019 it could well be the case that Santander are monitoring their lending targets and are revamping their range to entice borrowers.

“It’s important that lenders not only attract new blood, but also retain their mortgage book and it is entirely possible that other lenders may react to this latest launch to improve their own range.

“All in all it’s good news for mortgage customers hoping to lock into a competitive rate amidst economic uncertainties.”

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