Santander customers could save £600 a year as 50 changes introduced

Santander has thrown down the gauntlet in the mortgage price war, unveiling more than 50 new home loan deals and sweeping rate cuts that could save homebuyers millions of pounds.

The move, set to take effect from Tuesday, May 6, includes a raft of new-build-specific products and cashback incentives, with rates starting from as low as 3.89%.

The high street giant is also introducing a fresh range of three-year fixed deals and trimming interest across its existing home mover, first-time buyer, remortgage, buy-to-let, and large loan offerings.

Industry estimates suggest the total value of the cuts could amount to over £25 million a year in savings across Santander's borrower base, depending on uptake.

For a buyer with a £200,000 mortgage, the monthly savings are significant. A typical two-year fix previously priced at 4.34% falling to 3.89% could see the monthly repayment drop by approximately £50 a month, from £1,093.58 to £1,043.56.

Similar savings are seen across other products, with even modest rate cuts offering relief at a time when household budgets remain under pressure.

The bank's latest products include 43 new-build specific mortgages covering 60% to 95% loan-to-value (LTV), with two- and five-year fixed rates as well as two-year tracker options.

Cashback of £250 will also be offered on select high-LTV deals, aimed at helping first-time buyers and home movers with upfront costs.

Among the standout new offerings:

A 60% LTV two-year fixed at 3.89% with a £999 fee

A 95% LTV five-year fixed at 4.90%, with no product fee and £250 cashback

An 85% LTV three-year fixed at 4.49%, also with cashback

First-time buyers can also access deals like an 85% LTV two-year fixed at 4.29% with a £999 fee and £250 cashback - particularly attractive for those with limited deposits.

The lender is clearly targeting those with smaller deposits and aiming to support the Government's drive to build 1.5 million new homes, including via new towns.

Graham Sellar, Head of Santander for Intermediaries, said: "There's a renewed focus on the new build market spurred on by the Government's ambition to create 1.5 million new homes, in part through new towns.

"We're pleased to bolster our new build offering, alongside new three-year fixes and broad reaching rate reductions, to support our brokers and customers access more options to help them on their homeownership journey."

Santander's own research found that nearly three quarters of first-time buyers and over half of next-time buyers would consider moving to a new-build property in one of the proposed new town locations.

Some 83% of mortgage brokers believe the initiative will significantly reshape the homeownership landscape in the next 12 months.

Mortgage experts have hailed the announcement as a major step forward for buyers navigating high property prices and inflationary pressures.

Justin Moy, Managing Director at EHF Mortgages, told Newspage: "A significant number of new products and rate cuts shows a great desire at Santander to support the homebuying market throughout the summer.

"These changes will also benefit those looking for a better deal on their remortgage or product transfer. With the cost of funds still in decline... you could argue it's the perfect time to buy."

Emma Jones of , added: "Lenders are clearly keen to get the market moving as we're seeing product innovation and better rates by the day at present. With the Bank of England widely expected to cut rates next week... things are looking far brighter for bricks and mortar."

Katy Eatenton of Lifetime Wealth Management, said: "It's getting increasingly competitive on the mortgage front, which will be music to the ears of borrowers as we head into the early summer months..."

And Ranald Mitchell of Charwin Mortgages described Santander's move as more than just a product refresh, saying: "Santander have clearly done their homework...

"By launching over 50 new products including a huge push into the new build space, they're giving buyers and brokers the tools they need to act. This isn't just a product refresh, it's a strategic play to drive momentum across the mortgage market."