Santander is the latest bank to announce big cuts to mortgage rates, following similar moves by rivals HSBC, Barclays and NatWest.

From tomorrow, Santander will be reducing a number of fixed-rate deals for both new and existing customers by as much as 0.32 percentage points. This applies to both residential mortgages and buy-to-let deals.

These cuts come hot on the heels of other major lenders slashing their rates, taking them back to levels not seen since Liz Truss’s short-lived time as Prime Minister in September 2022.

What are the best deals on offer?

The lowest five-year fixed rate on the market right now is 3.77% from NatWest, while the lowest two-year fix is 4.12% with Halifax. It remains to be seen whether Santander’s new rates will undercut these.

What if I’m already a Santander customer?

If you’re already a Santander mortgage customer, you’re not being left out in the cold. You could potentially bag a rate cut of up to 0.32 percentage points by switching to a new deal with the bank. This is known as a “product transfer”.

What’s a product transfer?

A product transfer is when you decide to stay with your current lender instead of remortgaging with a different one. It’s often a simpler process than remortgaging, as you don’t have to go through the same level of checks and paperwork.

However, it’s important to remember that you might not get the absolute best rate available by sticking with your existing lender.

Should I remortgage or do a product transfer?

It’s always a good idea to shop around and compare deals from different lenders before making a decision. Speak to a mortgage broker to get impartial advice on the best option for your circumstances.