Santander for Intermediaries has launched a new string of new deals with loan sizes up to £2.5 million at 70% LTV as it looks to boost its market share for large loans.
The intermediary lender, which has seen a 30% increase in new business in the last six weeks, has also increased loan sizes by up to £1.5 million on selected products.
This reflects the fact that high-net worth properties are becoming an increasingly large part of the mortgage market, it said. The new rates are effective from today.
The new large loans range includes:
Two-year fix at 70% LTV with a 2.34% rate and £1,995 fee (£1.5 million to £2.5 million) with Remortgage or Homebuyer Solution.
Five-year fix at 70% LTV with a 3.24% rate and £1,995 fee (£1 million to £2.5 million) with Remortgage or Homebuyer Solution.
Lifetime tracker at 70% LTV with a 2.59% rate and £1,995 fee (£1 million to £2.5 million). No early redemption charges.
Miguel Sard, managing director of Santander for Intermediaries, said: “Market conditions continue to remain buoyant, so we are making some exciting changes to our mortgage range to continue our support of intermediaries and the UK housing market.
"We are launching a very competitive range of new products for customers looking for a larger loan of up to £2.5 million, extending the maximum loan size on selected standard mortgages to £1.5 million, and adding some new standard products with great rates to our already competitive range.
"In addition, our new Large Loans proposition will provide intermediaries with access to dedicated lending relationship managers and underwriters, offering a tailored service to meet their needs for loans of over £1 million.
“The recent revitalisation of our mortgage range, offering customers highly competitive, yet flexible, product options has resulted in a 30% increase on new business in the last six weeks – up 66% year on year.
"We believe these latest changes provide a fantastic opportunity for us to grow our business in the larger loans segment of the market while demonstrating our continued commitment to intermediaries.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, said this is "excellent news for those requiring large loans that high-street lenders such as Santander are increasingly looking at this market. It increases the options available, inevitably making rates more competitive.
"We expect other high-street lenders to follow suit and increase their maximum loan sizes. Indeed, we are working with another lender on a large loan pilot which launches on Tuesday.'
Jonathan Harris, director of mortgage broker Anderson Harris, said: 'While the private banks continue to offer competitive rates and products to wealthier borrowers, there is often a requirement for assets under management to be transferred as well, which doesn't suit everyone.
"Some borrowers therefore fall between the traditional high-street offerings and the private banks so it is important that lenders such as Santander, who do understand this market, offer a large loan product.
"Many borrowers may have good earnings and are purchasing high-value properties but haven't yet got the liquid assets to get some of the private banks interested."
Alongside the large loan products there are some changes to the main range, including a two-year fix at 70% LTV with 2.14% rate and £995 fee, and a two-year fix at 70% LTV with 2.59% rate and no fee.
Santander for Intermediaries Key Account exclusives include two-year fix at 70% LTV with a 2.39% rate and no fee for remortgages and a two-year fix at 75% LTV with a 2.74% rate and no fee for remortgages.
It also offers a two-fix at 70% LTV with a 2.04% rate and £1,249 fee on loans from £200,000 to £1 million.
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