TO CAP off a grim week for borrowers, with countless lenders hiking mortgage rates, Santander became the latest lender to announce rate rises Friday evening.
One broker said “the bad news for borrowers just keeps piling up” while another described the increases, of up to 0.35%, as a “sucker punch”.
From Tuesday 17 March, Santander will be increasing its new business first-time buyer, home mover, large loan, remortgage and buy-to-let rates by up to 0.35%.
Meanwhile, in its product transfer range, the lender is increasing residential and buy-to-let rates by up to 0.30%.
Stephen Perkins, Managing Director at Norwich-based Yellow Brick Mortgages, said: “The bad news for borrowers just keeps piling up. This news from Santander so late on a Friday suggests we can expect more of the same this week.
“The rate increases we’re now seeing and their impact on potential payments are such that we may see home buying or moving plans shelved.
“Hopefully, this will be a short-term blip that will blow over once stability is restored in the geopolitical landscape. But for now the mortgage market is extremely volatile and lenders’ nerves are fraught.”
Craig Fish, Director at London-based Lodestone Mortgages, is not so sure that what’s unfolding currently is a blip.
He said: “Just when brokers thought the worst was over, Halifax and Santander torpedoed the week. We’ve had rate hikes across the board: new business, product transfers, buy-to-let, the lot.
“Up to 0.35% in a single move from Santander on top of the 0.24% earlier in the week suggests this isn’t a blip. Swap rates have surged on the back of Middle East tensions and markets are rowing back hard on Bank of England rate cut expectations.
“Lenders are repricing fast and furiously to protect margins. The green shoots we’d carefully nurtured through early 2026, with sub-4% deals, cautious optimism and clients finally ready to act have been torched in a matter of days.
“It feels uncomfortably like 2022 all over again. The advice right now is simple: don’t wait, don’t speculate. Act.”
Simon Bridgland, Broker at Canterbury-based Charwin Private Clients, added: “Just when we thought the bad news was over, Santander delivers the sucker punch to sum up what was an awful week for borrowers.
Rates have been increased, products pulled, costs increased and there’s no reprieve on the horizon. Hopefully next week won’t be a repeat of this one, but it really is anyone’s guess.”
Though not surprised by the rate increases, some brokers applauded Santander for holding out with their lower rates for so long and also giving sufficient notice to borrowers.
Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, said: “Santander actually repriced downwards on that weekend of the conflict, and held some very low rates for a week and a half before the increase last Wednesday, and those announced Friday night will start from Tuesday 17th.
“Most lenders have suffered similar issues with pricing but at least Santander held their cheaper rates longer and have given a few days notice of this latest round of changes. Credit where credit is due to Santander.”
Aaron Strutt, Product and Communications Director at London-based Trinity Financial, was also philosophical and applauded the lender for not pulling its rates immediately.
He said: “Santander has been offering many of the cheapest rates in the market for a while, so these price hikes were expected.
“Even with these rate rises, Santander’s fixes will still be reasonably priced given everything that’s going on at the moment, but Nationwide will be offering stand out best buy rates and will be busier.
“That in turn means it will have to push up its pricing sooner rather than later. It seems like the remaining sub-4% fixes will be pulled next week.
“It is good to see Santander gave borrowers the weekend and Monday to get applications because many of the other lenders are giving very little notice before they pull their mortgages.”
