Santander has announced another significant increase in mortgage rates, raising them by 0.3% on Friday, March 20, 2026. This move comes merely days after the bank implemented previous rate hikes of up to 0.35% on Tuesday, March 17, 2026, signaling a rapid escalation in borrowing costs for homeowners and buyers.
Details of the Rate Increases
The latest adjustment affects all new business mortgages, including first-time buyer, home-mover, large loan, remortgage, and buy-to-let rates, with increases of up to 0.3%. Additionally, in its product transfer range, Santander is raising most residential and buy-to-let rates by up to 0.19%. This back-to-back rate rise has sparked concerns among industry experts and consumers alike.
Broker Insights and Market Reactions
Shaun Sturgess, director at Swansea-based Sturgess Mortgage Solutions, described the situation as lenders having the "heebie-jeebies." He emphasized that the consecutive hikes indicate a clear upward trend in mortgage rates. Sturgess advised aspiring buyers and those due to remortgage in the near future to secure a rate promptly, as lenders are moving quickly to adjust their offerings in response to market volatility.
Global Context and Economic Factors
The rate increases are occurring against a backdrop of heightened global tensions, including ongoing conflicts involving Iran, the US, and Israel, which have fueled fears of inflation. These geopolitical uncertainties are influencing financial markets, with expectations that the Bank of England may hold or even increase its base rate in 2026. As a result, swap rates and mortgage costs have been rising, putting pressure on lenders like Santander to adjust their rates accordingly.
This series of rate hikes underscores the broader economic challenges facing the housing market, with potential implications for affordability and access to credit. Consumers are urged to stay informed and consider locking in rates early to mitigate the impact of further increases.
