Santander has cut its NewBuy mortgage rates by up to 0.7 per cent.
The lender has cut its three-year fixed rate from 5.49 to 4.99 per cent. It has reduced its five-year fixed rate from 5.49 to 5.29 per cent and its seven-year fixed rate from 5.99 to 5.29 per cent. All three products come with a £99 fee and are 95 per cent LTV.
The lender’s NewBuy products are available only through intermediaries.
Under the scheme, announced in the Government’s housing strategy in November and launched in March, lenders will offer 95 per cent LTV mortgages for new-build properties against a mortgage indemnity guarantee funded jointly by house builders and the Government.
Santander director of mortgages Phil Cliff says: “These NewBuy product rate reductions demonstrate Santander’s continued commitment to helping customers get on the housing ladder. Our three-year fixed is now a market-leading 4.99 per cent while our five and seven-year fixed remain highly competitive at 5.29 per cent.”
Coreco communications director Andrew Montlake says: “I think the scheme has got some legs and hopefully the other lenders will follow suit.”