Santander Mortgage Rates Increase in July 2026: What Buyers Need to Know
Santander has increased most fixed mortgage rates and selected tracker rates across its new business range. The changes took effect on 29 July 2026 and affect products for first-time buyers, home movers, remortgagers and some new-build buyers.
This replaces earlier reports about Santander reducing mortgage rates. Mortgage products can change quickly, so buyers should always check the publication date before relying on a rate.
Market information checked on 29 July 2026.
What Has Santander Changed?
Most new business fixed mortgage rates increased by approximately 0.10 to 0.15 percentage points. A small number of products increased by 0.19 percentage points.
Selected new business tracker rates also increased by 0.15 percentage points. Some residential product transfer rates increased by 0.05 percentage points.
| Example Product | New Rate | Increase |
|---|---|---|
| Home mover, 60% LTV, two-year fixed, £1,499 fee | 4.70% | 0.15% |
| First-time buyer, 60% LTV, two-year fixed, £999 fee | 4.75% | 0.15% |
| First-time buyer, 90% LTV, five-year fixed, £999 fee | 5.08% | 0.15% |
| First-time buyer, 95% LTV, five-year fixed, no fee | 5.55% | 0.15% |
| My First Mortgage, 98% LTV, five-year fixed, no fee | 5.89% | 0.15% |
| Remortgage, 60% LTV, two-year fixed, £1,499 fee | 4.75% | 0.15% |
These are selected examples, not the complete Santander mortgage range. Rates vary according to deposit, loan-to-value, mortgage term, product fee, property type and borrower eligibility.
What Does Loan-to-Value Mean?
Loan-to-value, usually shortened to LTV, compares the mortgage amount with the property value.
Example: If a property costs £300,000 and the buyer provides a £30,000 deposit, the mortgage is £270,000 and the LTV is 90%. A lower LTV normally provides access to a wider selection of mortgage products.
Why Can Fixed Mortgage Rates Change?
Santander did not provide a detailed reason for every increase in its product notice. Fixed mortgage pricing is commonly influenced by wholesale funding costs, swap rates, competition, lending targets and expectations for future interest rates.
Swap rates help lenders estimate the cost of providing fixed-rate borrowing over a particular period. When swap rates rise, fixed mortgage rates can increase. When swap rates fall, lenders may reduce rates, although the change is not automatic.
Important difference: The Bank of England Bank Rate does not need to change before fixed mortgage rates move. Fixed rates can increase or decrease as financial market expectations change.
What Is the Wider Mortgage Market Position?
The Bank of England kept Bank Rate at 3.75% at its June 2026 meeting. However, mortgage pricing remained sensitive to inflation expectations, energy prices and financial market conditions.
Average mortgage rates across the market increased during July. This means the latest Santander change is part of a wider period of mortgage repricing rather than an isolated decision by one lender.
How Much Difference Can a 0.15% Increase Make?
Consider an illustrative repayment mortgage of £300,000 over 25 years.
| Mortgage Rate | Estimated Monthly Payment |
|---|---|
| 4.55% | Approximately £1,676 |
| 4.70% | Approximately £1,702 |
The difference is approximately £26 per month. The actual payment will depend on the mortgage amount, term, repayment method, product fee and final rate offered.
Who Could Be Affected?
First-Time Buyers
First-time buyers applying for a new Santander mortgage may face a higher rate than was available before 29 July. Buyers with smaller deposits could see higher rates because their mortgage normally falls within a higher LTV band.
Home Movers
Home movers using a new Santander mortgage product may need to update their monthly repayment calculations and affordability budget.
Remortgagers
Many Santander remortgage fixed rates increased by 0.10 or 0.15 percentage points. The effect will depend on the selected product, LTV and whether the mortgage includes a fee.
Existing Santander Customers
Borrowers who are already within a fixed-rate period are normally not affected until that fixed period ends. However, some new residential product transfer rates increased by 0.05 percentage points.
Applicants With an Existing Mortgage Offer
A completed mortgage offer may retain the rate already secured, subject to its conditions and expiry date. Applicants should confirm the position directly with Santander or their mortgage adviser before changing or cancelling an application.
Which Santander Rates Did Not Change?
According to the Santander product update, there were no changes to:
- Tracker rates within the remortgage range
- Tracker rates within the product transfer range
- Buy-to-let rates within the product transfer range
Do Not Compare Mortgage Rates Alone
The lowest headline rate may not provide the lowest overall cost. Buyers should also compare:
- Product fees
- Monthly repayments
- APRC
- Cashback and valuation benefits
- Early repayment charges
- Mortgage term
- Reversion rate after the initial deal
- Portability and overpayment rules
- Total cost during the fixed period
Practical point: A mortgage with a slightly higher rate and no product fee may cost less overall than a lower-rate mortgage carrying a large fee, particularly for a smaller loan.
What Should Buyers Check Now?
- Confirm whether the quoted mortgage rate is still available.
- Ask whether an existing application or mortgage offer is protected from the change.
- Recalculate the monthly payment using the final offered rate.
- Compare the total cost including product fees and incentives.
- Check how long the mortgage offer remains valid.
- Keep enough money available for Stamp Duty, legal fees, surveys and other buying costs.
- Use an FCA-authorised mortgage adviser where personalised mortgage advice is required.
Quick Summary
- Santander increased most new business fixed rates on 29 July 2026.
- Many first-time buyer and home mover rates increased by 0.15 percentage points.
- Selected remortgage rates increased by 0.10 or 0.15 percentage points.
- Some residential product transfer rates increased by 0.05 percentage points.
- Existing fixed-rate borrowers are normally unaffected until their deal ends.
- Borrowers should compare the total mortgage cost rather than the interest rate alone.
Simple takeaway
The latest Santander update is a mortgage rate increase rather than a reduction. Buyers and remortgagers should check current products and recalculate their monthly payments before making a financial commitment.
Official information: Santander mortgage rate update, Santander latest mortgage rates and Bank of England Bank Rate.