Santander Remortgage Rates: Take the Transfer or Move to a New Lender?

Santander prices remortgages in four fee tiers, £0, £499, £999 and £1,499, which gives more room to match the fee to the loan than most lenders allow. The 2-year at 60% LTV runs from 5.08% with the £1,499 fee to 5.40% fee-free, and 3-year and 10-year fixes are offered to 75% LTV, from 5.07% and 5.21% with the £999 fee. Fixes run to a calendar date: 2 January 2029 on the 2-year and 2 January 2032 on the 5-year. The comparison calculator shows an early repayment charge of 2% on the 2-year and 5% on the 5-year, and fixes allow overpayments of up to 10% of the balance each calendar year without a charge. Against Santander's pricing effective 23 September, the £999 2-year at 60% LTV has fallen from 5.21% to 5.12%, at 90% from 5.75% to 5.50%, and the 5-year at 90% from 5.67% to 5.47%. The 2-year at 60% is still 0.56 points above the 4.56% it carried from 3 September.

Santander also prices a 2-year tracker for remortgage at 4.20% at 60% LTV, Bank Rate of 3.75% plus 0.45 points, and 4.30% at 75%, both with a £999 fee. That is 0.92 points below the equivalent 2-year fix, worth about £132 a month on a £250,000 loan over 25 years, but the rate moves with every Bank of England decision. The trackers carry no early repayment charge and allow unlimited overpayments, so they are the least costly Santander remortgage to leave, although legal fees paid by Santander are repayable if the mortgage is repaid within 2 years. Our fixed or tracker mortgages analysis weighs that gap against the certainty a fix buys.

Santander product transfer rates: moving to a new deal

Santander does not publish product transfer rates on its own website. Existing customers see them after logging in to Manage My Mortgage. From Santander's 6 October 2026 intermediary bulletin, the 2-year transfer fix with a £999 fee starts at 4.89% and the 5-year at 4.94% at 60% LTV, against 5.12% for a new borrower remortgaging in.

From Santander's 6 October 2026 intermediary bulletin, fee-free transfer fixes start at 5.19% on the 2-year and 5.07% on the 5-year at 60% LTV, and at 85% to 90% LTV the £999 fee fixes are 5.38% on the 2-year and 5.42% on the 5-year. Each sits below the matching remortgage rate, by 0.23 points on the 2-year at 60% LTV but by only 0.05 points on the 5-year at 90%. Santander says the rates it offers existing customers will be the same, if not better, than those it offers new customers remortgaging to it, and the bulletin bears that out. The gap has narrowed, because Santander raised selected transfer fixes on 6 October while cutting its new business range, and the 5-year transfer at 60% LTV moved from 4.89% to 4.94%.

Existing customers can lock in a new deal 4 months before their current fixed rate ends, online through Manage My Mortgage or the online mortgage transfer service, by phone with free advice, or through a broker. There are no affordability or income checks, no legal or valuation fees and no new Direct Debit to set up. A new deal priced below the current one can start straight away with no early repayment charge or wait for the current deal to end, and a deal booked more than 14 days ahead can still be changed or cancelled. Once it starts there is no cooling-off period. Switching more than 4 months out means paying the early repayment charge, and an overpayment free of that charge can be made when changing deal by phone or through a broker, but not in Mobile or Online Banking. Our product transfer mortgage guide explains when a like-for-like switch beats a full application.

Is a Santander product transfer better than remortgaging elsewhere?

For most existing customers the transfer range is the price to beat. It sits below Santander's remortgage table in every band the bulletin shows and needs no valuation, legal work or affordability check. Remortgaging elsewhere wins when another lender prices your LTV band lower, when you need to borrow more, or when a new valuation moves you down a band.

The gap is worth real money at low LTV. On a £250,000 balance over 25 years, the 4.89% 2-year transfer costs about £1,446 a month against £1,479 on the 5.12% remortgage, around £34 a month or £804 over two years. On the 5-year at 60% LTV the gap is 0.18 points, about £26 a month or £1,575 over five years. At 85% to 90% LTV it shrinks to about £18 a month on the 2-year and £7 on the 5-year, so a competing lender has a far lower bar to clear there. Count fees, legal costs and any cashback on both sides. Our remortgage calculator runs the break-even month for any two deals.

Where moving lender wins is on the LTV bands and on criteria. Santander's 2-year £999 remortgage fix steps from 5.12% at 60% LTV to 5.24% at 75%, 5.39% at 85% and 5.50% at 90%, and the biggest step is the 0.15 points between 75% and 85%. A borrower just above a band edge gains most from a fresh valuation. Borrowing more from Santander as an existing customer is a separate application, with a minimum of £5,000 over at least 5 years and a ceiling of 90% of the home's value including the current mortgage. Our LTV calculator shows which band a current valuation lands in.

To see a Santander transfer offer and a whole of market remortgage costed side by side on your own balance, call 01202 155992 or contact Mortgage One.

Which Santander remortgage deals have the lowest total cost?

At our 7 October 2026 check, on a 2-year fix at 60% LTV the fee-free product costs least below roughly £207,000, the £499 fee tier from there to about £322,000 and the £999 tier above that. On the 5-year the £499 tier takes over from fee-free at about £177,000 and the £999 tier at about £284,000.

The gaps explain it. The fee-free 2-year fix sits 0.28 points above the £999 product at 60% LTV, worth about £25 a month on £150,000, or £595 over two years, short of the fee. On the 5-year the gap is 0.13 points, about £11 a month on £150,000, but the saving runs for five years. The £1,499 tier prices only 0.04 points below the £999 tier on the 2-year and 0.02 points on the 5-year, so its extra £500 pays back only above about £889,000 and £711,000. For loans between roughly £200,000 and £300,000 the £499 tier is the one to price first.

Santander lets the product fee be paid up front or added to the mortgage. If it is added, interest is charged on it unless it is paid within 21 days of the mortgage starting, so £999 costs more than £999 by the time the mortgage is cleared. A borrower planning overpayments, and Santander allows 10% a year on its fixes, gains more by paying the fee up front where the budget allows. Our remortgaging guide sets out the full cost comparison, including fees, valuation, legals and the early repayment charge on the old deal.

Free legals, valuation and the Santander remortgage process

Every remortgage product in Santander's comparison calculator includes a free valuation and standard legal fees paid. Santander's remortgage page describes the incentive as standard legal fees paid or £250 cashback paid to your conveyancer on completion, repayable if the mortgage is repaid within 2 years. Santander quotes around 6 to 8 weeks to complete.

Santander suggests starting 3 to 6 months before the current deal ends. A Decision in Principle is free, uses a soft credit search only, stays valid for 60 days and is needed before an online application. New build cases, borrowing over £999,999, Shared Equity and Shared Ownership go by phone rather than online. Santander also charges an account fee, payable on completion or deferred to the end of the mortgage.

The remortgage range in the comparison calculator stops at 90% LTV, and the 3-year and 10-year fixes stop at 75%. Interest only is available, though Santander says it may limit the amount allowed, and a remortgage can release equity. Santander does not offer lifetime mortgages. Those limits, and the step in pricing above 75% LTV, decide whether a capital-raising case belongs with Santander or with another lender.

What a lapsed Santander deal costs on its 6.50% and 7.00% rates

A Santander deal applied for from 21 November 2023 reverts to the Standard Variable Rate of 6.50%. On a £250,000 repayment mortgage over 25 years that is about £1,688 a month against £1,479 on the 5.12% 2-year remortgage fix, a gap of £209 a month, so under five months on the variable rate costs more than a £999 product fee.

Deals applied for between 23 January 2018 and 20 November 2023 revert instead to the Follow-on Rate of 7.00%, Bank Rate plus 3.25 points, and those applied for before 23 January 2018 to the Standard Variable Rate. On the same £250,000 the Follow-on Rate costs about £1,767 a month, £288 more than the 5.12% remortgage fix and £321 more than the 4.89% transfer. Neither rate carries an early repayment charge or a product fee, so a customer who has drifted onto one can move to a new deal straight away. Our standard variable rate chart shows where lender reversion rates sit across the market.

If you are weighing a 2-year against a 5-year, Santander prices them level with the £999 fee at 60% and 75% LTV and the 5-year slightly lower at 85% and 90%, while fee-free the 5-year is lower at every band. Our comparison of 2-year and 5-year fixed deals works through the choice on total cost, and our UK mortgage rates today page tracks where the other big lenders sit this week.

Santander's trackers sit against a Bank Rate of 3.75%, while its fixed pricing moves on swap rates rather than waiting for Bank Rate. Every 2-year fix in the table ends on 2 January 2029 and every 5-year on 2 January 2032, and our UK interest rate projection tracks the market-implied path a borrower would remortgage into at that point.

Figures as of 7 October 2026, London.

If your Santander deal ends within the next six months and you want the transfer offer weighed against a move to another lender, call 01202 155992 or contact Mortgage One.

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The information provided in this article is for general guidance only and does not constitute personal or regulated financial advice. If you'd like to understand what these moves could mean for you, speak to Mortgage One. We can explain your options and timings based on your specific circumstances.

FAQs

1. What remortgage rates is Santander currently offering?

At our 7 October 2026 check Santander's remortgage fixed rates ran from 5.12% on the 2-year and 5-year £999 fee products at 60% LTV to 5.84% on the fee-free 2-year at 90% LTV. The lowest fixed rate was 5.07% on the 3-year £999 fee product at 60% LTV, and the 2-year tracker started at 4.20%.

2. Is Santander dropping mortgage rates?

Yes, on its new business range. Santander cut fixed and tracker rates on 6 October 2026, and the £999 fee 2-year remortgage fix at 60% LTV fell from 5.21% to 5.12% and at 90% LTV from 5.75% to 5.50%. Selected product transfer fixes rose at the same time, the 5-year at 60% LTV from 4.89% to 4.94%.

3. What is the Santander 2 year fixed remortgage rate?

For a borrower moving to Santander, the 2-year fix at 60% LTV is 5.12% with a £999 fee, 5.23% with a £499 fee, 5.08% with a £1,499 fee or 5.40% fee-free at our 7 October 2026 check. From Santander's 6 October 2026 intermediary bulletin, existing customers transferring start at 4.89% with the £999 fee.

4. Should I fix for 2 or 5 years with Santander?

With the £999 fee the two terms are priced level at 60% and 75% LTV, so flexibility usually decides it. The 5-year carries an early repayment charge of 5% against 2% on the 2-year in Santander's comparison calculator. Fee-free, the 5-year is lower at every band, by 0.15 points at 60% LTV.

5. When can I switch to a new Santander deal?

Santander lets existing customers lock in a new deal 4 months before their current fixed rate ends. Switching earlier means paying the early repayment charge. Customers on the Standard Variable Rate, the Follow-on Rate or a deal without an early repayment charge can move without waiting, and the new deal starts straight away.

6. Can existing Santander customers remortgage with Santander?

Yes, through a product transfer. Santander runs no affordability or income checks and charges no legal or valuation fees on a transfer, and says its rates for existing customers will be the same, if not better, than those for new customers remortgaging in. Borrowing more is a separate application, up to 90% of the home's value.

7. What happens if I do nothing when my Santander deal ends?

Santander moves you onto its Standard Variable Rate of 6.50%, or its Follow-on Rate of 7.00% if the deal was applied for between 23 January 2018 and 20 November 2023. On a £250,000 repayment mortgage over 25 years the 6.50% rate is about £209 a month more than the 5.12% 2-year remortgage fix, and neither rate carries an early repayment charge.

8. Do I need a broker to remortgage with Santander?

No, Santander takes transfers and remortgage applications directly, but its offer only compares Santander with Santander. A broker prices the same balance across the whole of market, checks whether the transfer or a remortgage elsewhere costs less over the fixed period, and places the case where it fits. Mortgage One runs that comparison on every Santander case before a transfer or application is submitted.