Santander is sending £250 cashback to some mortgage customers. The offer from the bank, which has branches in Birmingham, comes as fixed rate mortgages have fallen again this week, offering some relief to people looking to buy or remortgage.
Details of the Santander Cashback Offer
Caitlyn Eastell, personal finance analyst at Moneyfacts, said: "As well as extending end dates, Santander has reduced several of its fixed rate products, including the two-year deal at 85% loan-to-value. This option for second-time buyers has seen a 0.19% cut and is now priced at 4.90% until 2 August 2028."
Ms Eastell noted that borrowers looking to save on upfront costs "may find this an enticing option" as it offers a "reasonable" £999 product fee, "boosted by its generous incentive package which includes a free valuation and £250 cashback".
She added: "The combination of these features earns this product a spot in the Moneyfacts Best Buys and an Outstanding Moneyfacts product rating."
Market Context and Expert Opinions
John Everest, mortgage broker at Everest Mortgage Services, said: "Over the past 48 hours, we’ve seen a small number of high street lenders cut mortgage rates for the first time since the recent Iran conflict began unsettling markets.
"It’s an early sign that pressure on pricing is starting to ease, with the ceasefire, reopening of key shipping routes and falling oil prices helping calm wider financial conditions. If that stability holds, we’re likely to see more lenders follow into next week as swap rates settle, which could lead to a gradual easing in mortgage pricing across the market."
David Hollingworth, associate director at L&C Mortgages, added: "As the conflict in the Middle East has eased so too have swap rates, a key indicator for fixed rate mortgages. Lenders that had initially priced up to avoid more spikes in volume from borrowers rushing to grab the lowest rates have also been able to regroup and reassess how competitive they can be. That’s increasingly seeing more meaningful improvements that are driving the market lower. The more stable market rates are giving lenders the chance to price more competitively, although fixed rates remain substantially higher than they were at the end of February."
