Santander cuts mortgage rates below 4% in 2025, first major lender to do so

11 February 2025 , 21:23

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Santander cuts mortgage rates below 4% in 2025, first major lender to do so

Following on from our last post, and Santander has now become the first major lender to cut mortgage rates below 4% in 2025.

The bank has just announced it will offer those with a 60% loan-to-value ratio rates of 3.99% on residential mortgages.

We saw these kinds of deals finally return to the market last year - but they crept back up in the months that followed the budget and Donald Trumps’ election win.

Whether it’s correlation and causation, you could argue either way - but there was a feeling the high street needed to rethink its assessment of how quickly interest rates would fall this year.

Now, however, the situation appears to be improving again, after the Bank of England cut the base rate to 4.5% last week.

Santander’s reductions - knocking up to 0.40% off the headline rates - will take effect on Thursday.

James Turner