A simples guide

Santander Mortgages

Santander made its first appearance on British soil in 2010 when the Spanish-owned bank rebranded the Abbey National and the savings department of Bradford & Bingley. Now it has established itself as one of the biggest banks on the high street.


If you are thinking of taking a mortgage with Santander, make sure you have done your homework. You need to compare the rates, as well as the terms and conditions. Our price comparison service can help you there.


What mortgages are on offer at Santander?

Santander offers a variety of mortgages and is one of the few banks to still offer Interest Only repayment plans. This type of mortgage used to be commonplace, but now they are rarely approved as the mortgage only covers the interest charges rather than paying back the mortgage itself. The capital still needs to be repaid when the mortgage term ends, so even if you go for this option you may need a separate investment scheme to cover the mortgage capital.

Most customers will opt for a repayment plan and then the main choice comes down to a fixed rate or tracker mortgage. The fixed rate is generally held in place for two, three or five years. That gives you the peace of mind of knowing that your mortgage payment will stay constant during that term, no matter what happens to the interest rates, while the tracker can change depending on the Bank of England base rate. 

house and piggy bank

Mortgages on offer at Santander?

You can overpay up to 10% a year on a fixed rate mortgage without incurring charges. But if you switch to a tracker mortgage at the end of the fixed period then you can choose to extend your mortgage to reduce your monthly payments or simply reduce the term of your mortgage.

There is always a downside, however. With a fixed rate mortgage, the initial rate will almost always be higher and you won’t feel the benefit if interest rates drop. If you make any significant changes to your mortgage during the fixed rate period then you will almost certainly incur charges, too, especially if you switch provider.

The tracker comes with a lower introductory rate than the bank’s Standard Variable Rate, but it is subject to change at any time. If the Bank of England base rate suddenly starts to climb, then your monthly mortgage payments could increase too. 

What mortgage rates are available at Santander?

Santander now offers 5% mortgages to help young buyers on to the property ladder, as well as a number of high loan-to-value (LTV) mortgages that can be accessed through third-party brokers. These include an 85% LTV mortgage on a five-year fixed rate for 3.14% with a £999 arrangement fee and a 90% LTV deal on a two-year fixed rate at 2.59% with a similar initial charge.

The bank’s Standard Variable Rate has stayed constant at 4.7% since October 2012, but it is still subject to change at any time so make sure you have the correct figures before you commit.

When you take a mortgage with the bank you also get Santander’s Homebuyer Solution, which includes a free valuation on any home up to £2.5 million in value. You also get £250 cashback when you complete.

Should I compare the market?

Santander has a solid range of mortgages that may well suit your needs. Before you commit to any long-term financial product though, you should do a thorough comparison with other mortgage providers. A number of mortgage providers want your business and that means the offers change all the time. Some focus on introductory offers, others provide a longer fixed-rate and others will offer payment holidays or other flexible terms.

So make sure you have the full facts at your disposal and make sure that you have compared the best mortgages on the market right now. We can help you there – why not take a look at our mortgage tables to find the right one for you.

All Santander mortgage details are based on information provided on santander.co.uk data on 21 April 2016

Looking for a Quote?

Compare mortgages in seconds and start saving

Get a quote