Santander UK also said on Tuesday that it had recorded a 130% increase in mortgage applications in the fourth quarter of 2024 compared with the same period a year earlier, as some home buyers sought to potentially save themselves thousands of pounds in stamp duty costs.
Barclays has also cut the rate on its Green Home five-year fixed-rate mortgage to 3.99%, with the deal also having an £899 fee and requiring a 40% deposit.
Santander’s new deals include a 60% LTV (loan-to-value) two or five-year fixed rate at 3.99% for home buyers, with a £1,999 fee.
Ashton Berkhauer, a mortgage expert at MoneySuperMarket, said: “These new fixed-rate deals are a positive sign that competition is heating up amongst mortgage lenders.
To join Barclays Premier, people need to open a Premier current account, with eligibility for the account including paying in a gross annual income of at least £75,000, or having a total balance of at least £100,000 in savings with Barclays, in Barclays UK investments, or in a mix of both.
