Santander for Intermediaries is set to reduce rates on selected fixed rates across new business and product transfer ranges starting 6 April. The new rates are expected to benefit those seeking to buy newly constructed properties.
Under the new scheme, most purchase rates will decrease by 0.04% to 0.20%, including larger loan rates. Additionally, all new build rates will be reduced by at least 0.05%, with under 75% loanto-value rates dropping by 0.15% or 0.20%. Meanwhile, selected remortgage rates will decrease by between 0.08% and 0.20%.
These changes could help to increase the affordability of new builds and encourage more buyers to invest in newly constructed homes. The lowest on-sale rate will be 60% LTV, with a five-year fixed rate of 3.94% and a £999 fee for purchases.
Santander’s decision to focus on new build rates comes amid a growing demand for new homes in the UK.
The government has pledged to build 300,000 new homes each year in order to address the ongoing housing shortage, and initiatives like the Help to Buy scheme have helped to make home ownership more accessible to first-time buyers.
This move by Santander could encourage other lenders to follow suit and offer more competitive rates for new builds.
With interest rates expected to remain low for the foreseeable future, now could be an excellent time for buyers to invest in newly constructed properties.