Santander has launched a suite of buy-to-let remortgages with rates starting from 2.29 per cent as part of a wider revision of its mortgage business.
The rate applies to a two-year fix at 60 per cent LTV with no product fee, free standard valuation and £250 cashback on completion.
The other product available to borrowers with a 40 per cent deposit is a five-year fix to 2.45 per cent with £1,999 product fee, free standard valuation, £250 cashback on completion.
The equivalent product at 75 per cent LTV commands a higher rate of 3.04 per cent.
Meanwhile, a two-year fix at 75 per cent LTV is priced at 2.59 per cent with no product fee, free standard valuation and £250 cashback on completion.
In addition, the bank has launched three new fixed rates for first-time buyers across a range of loan to values.
These are a two-year fix to 60 per cent LTV at 1.59 per cent; a five-year fix to 75 per cent LTV at 2.29 per cent; and a five-year fix to 85 per cent LTV at 2.59 per cent.
Each deal comes with no product fee and £250 cashback on completion.
The lender has also introduced a five-year fixed rate residential mortgage at 2.49 per cent to 80 per cent LTV. The loan has no product fee and is available on purchase and remortgage with £250 cashback on completion.
Finally, the lender has discounted a number of rates by up to 0.3 of a percentage point in its residential range.
Provider view
Miguel Sard, managing director of mortgages at Santander UK, said: “Following our announcement a couple of weeks ago about our new affordability approach for buy-to-let customers, we are very pleased to now introduce some market-leading remortgage rates to further support this important sector of the market.
“We are also excited to be introducing a highly competitive range of new mortgages and rate reductions designed to provide additional choice and value for customers across the residential market.”
Adviser view
Commenting on the new two-year buy-to-let fix at 60 per cent LTV, Ian Gwinnell, director and independent financial adviser at Stafford-based Counties Financial, said: “The rate is exceptional. It appears that Santander are trying to align the buy-to-let remortgage fix with rates offered in the residential market.
“I think the buy-to-let remortgage market has always been quite popular. We deal with a number of people in our practice where clients have small to medium-size portfolios, so we broker remortgages often.
He added: “I have had a lot of dealing with Santander in the past. It has a great online portal where you can submit applications and get a decision in principle very quickly.”
Charges
Ranges from fee free to £1,999.
Verdict
The buy-to-let market has waned as a result of the unfavourable tax and criteria changes, but the demand for buy-to-let remortgages has fared better thanks to increasingly competitive rates. Here, Santander is moving with the times by unveiling not one but four remortgage products. The lender has also a thrown in new fixed-rate products as well as applied cuts on a number of rates on its residential range for good measure. For this, it is clear Santander aims to strengthen its position in the mortgage market as one of the leading lenders.
