Santander cuts 230 mortgage rates, with buy-to-let deals down by up to 13bps

Santander is reducing rates across 230 mortgage products, with residential deals falling by as much as 25 basis points and buy-to-let products by 5 to 13 basis points. Mortgage Strategy reported the changes on 7 August 2026, with the new pricing expected to take effect from the following Tuesday. Before acting, landlords and brokers should check Santander’s own intermediary updates and product criteria for exact timings and eligibility.

For landlords, the practical point is straightforward: a 5 to 13 basis point reduction does not automatically justify a remortgage. On a £300,000 interest-only buy-to-let mortgage, a 0.13 percentage point rate reduction would save about £390 a year, or roughly £32.50 a month, before fees. If the new product includes a £1,999 arrangement fee, valuation costs, legal fees or an early repayment charge, that saving may disappear.

This is a commercial repricing rather than a legal or regulatory change. Santander’s announcement does not create any new statutory duty for landlords. The compliance risk lies in how firms discuss it: letting agents and property managers should not give regulated mortgage advice unless they are authorised by the FCA to do so. The safe approach is to alert clients to the rate move, remind them to check fees and early repayment charges, and refer them to an authorised broker or adviser.

The London angle is important because many landlords here refinance larger loan balances against lower yields than in cheaper parts of the country. A small rate reduction can still improve cashflow on loans of £600,000 or £800,000, but those cases are often more exposed to lender affordability models, interest cover ratio requirements and portfolio underwriting rules. Limited company borrowers, HMOs and multi-property portfolio landlords may face tighter criteria than a straightforward single-flat remortgage.

Landlords should also avoid assuming Santander is automatically the best option. Mortgage Strategy said NatWest, Nationwide and Barclays had also reduced some pricing that week, while Halifax had increased certain rates. A headline rate that is 10 basis points lower can still be poorer value overall once arrangement fees, free valuation offers, legal packages and reversion rates are taken into account.

Timing matters as well. If a fixed rate ends within the next three to six months, it is sensible to ask an authorised mortgage adviser for an updated review. Many lenders allow applications or product transfers in advance of the end date. If the fixed rate ends much later, immediate action may be less compelling unless the saving clearly outweighs any early repayment charge. Those charges often range from 1% to 5% of the outstanding balance, so on a £400,000 loan they could amount to £4,000 to £20,000 depending on the mortgage terms.

For portfolio landlords, the operational issue is preparedness. If lenders continue repricing through August, brokers, valuers and underwriting teams may become busier ahead of the autumn refinance period. Landlords with several fixed-rate expiries later in 2026 should have tenancy details, current rent schedules, EPCs, HMO or selective licensing records where relevant, and company accounts ready for their broker or lender.

Landlords with higher loan-to-value borrowing should also check current criteria carefully. Santander’s wider repricing includes some high-LTV residential products, but buy-to-let lending rules are separate and usually tighter. Properties such as flats above shops, ex-local authority homes, short-lease flats or larger HMOs may fall outside standard criteria even where headline rates improve. The source summary does not include full product-by-product eligibility, so that should be confirmed directly with Santander or through mortgage sourcing systems.

Three practical steps stand out. First, review any property with a fixed rate ending before 31 January 2027 and note the outstanding balance, current rate, monthly payment, product transfer options and any early repayment charge. Second, ask an authorised buy-to-let adviser to compare total cost, including fees, rather than rate alone. Third, if a remortgage is likely, make sure tenancy paperwork and access arrangements are in order so valuations and lender checks are not delayed.

Rentals & Sales can help London landlords prepare tenancy, rent and compliance documents needed for a remortgage application. This article is for general information only and is not regulated mortgage advice.