Santander is cutting selected buy-to-let purchase fixed rates by up to 0.25% and reducing some landlord product transfer rates, offering a small sign that lenders are still prepared to compete for business even after weeks of rate volatility.
BTL cuts come despite unsettled rate backdrop
The bank said the changes take effect from 16 April and include reductions across parts of its buy-to-let purchase range as well as cuts of 0.1% on two- and five-year fixed landlord product transfers above 75% loan to value. The move comes at a time when landlords have been dealing with a stop-start pricing cycle rather than a clean downward trend.
That matters because many borrowers coming off older deals are now choosing between paying up for certainty or trying to stay flexible in case pricing improves later in the year. A quarter-point cut will not transform affordability on its own, but it does show some mainstream lenders are still willing to sharpen pricing where they see demand.
Ben Merritt, head of mortgage trading at Santander UK, said the lender was able to pass on lower borrowing costs after a fall in swap rates, while acknowledging that borrowers still face an uncertain market.
This follows Residential Landlord’s coverage of the Bank of England’s warning on higher mortgage payments, which showed many borrowers have yet to feel the full impact of refinancing. It also builds on Residential Landlord’s report on growing pressure from buy-to-let finance costs, underlining that even modest pricing changes can matter where margins are thin. Santander’s latest mortgage update is outlined by Santander for Intermediaries.
Why landlords should not overread a small cut
For landlords, the temptation is to treat any lender cut as the start of a broader easing cycle. That would be premature. Pricing is still moving in short bursts, and the same market that allows one lender to trim rates can quickly force another to reprice upward if swap markets turn again.
The stronger angle here is competitive positioning. Santander is not trying to signal cheap money is back. It is trying to stay visible in a market where specialist and mainstream lenders alike know landlords will keep shopping around for workable remortgage terms. The more lenders that make small cuts, the harder it becomes for rivals to sit still.
Landlords should also watch transfer pricing closely. For some borrowers, staying put on a reduced transfer rate may stack up better than chasing a marginally lower headline rate elsewhere once fees, legal costs and fresh stress testing are included.
Opinion
Small buy-to-let rate cuts are welcome, but they do not change the wider picture. Landlords are still operating in a market where funding can move faster than rents and much faster than regulation. That means the best deal on paper is not always the safest one in practice.
