Santander has launched its lowest-ever two-year fixed rate.
The product, available to 60 per cent LTV, is priced at 1.59 per cent and is available to remortgage customers only. It has a £1,495 fee.
Santander has also made substantial reductions to its two Help to Buy mortgage guarantee products. Its two-year fix has been cut by 80 basis points to 4.69 per cent and its five-year fix by 60 basis points to 4.99 per cent. Both products are fee-free.
The lender has also reduced rates by up to 20 basis points elsewhere in its range.
The bank is now offering a 2.14 per cent two-year fixed rate, available to 80 per cent, and a 3.19 per cent five-year fixed rate, also available to 80 per cent LTV.
Santander head of mortgages Miguel Sard says: “These products are some of the lowest rates available and we will help customers looking to arrange the best possible deal in 2015.”