Santander announces £250 offer to new customers – ‘generous’ | Personal Finance | Finance

Santander is offering £250 cashback to certain mortgage customers in a new “generous” deal. It comes as the banking giant made cuts to several fixed-rate products, landing its two-year deal at 85% loan-to-value a spot on Moneyfactscompare.co.uk’s “picks of the week”.

Caitlyn Eastell, personal finance analyst at Moneyfacts, said: “As well as extending end dates, Santander has reduced several of its fixed rate products, including the two-year deal at 85% loan-to-value. This option for second-time buyers has seen a 0.19% cut and is now priced at 4.90% until 2 August 2028.”

Ms Eastell noted that borrowers looking to save on upfront costs “may find this an enticing option” as it offers a “reasonable” £999 product fee, “boosted by its generous incentive package which includes a free valuation and £250 cashback“.

She added: “The combination of these features earns this product a spot in the Moneyfacts Best Buys and an Outstanding Moneyfacts product rating.”

The offer, which is only available to second-home buyers, has a rate of 4.90%, which is fixed until August 2, 2028, before reverting to 6.50%.

It has an APRC of 6.4% and a product fee of £999. It comes with a free valuation as well as the £250 cashback.It also offers flexible features, including the ability to make overpayments.

The Moneyfactscompare.co.uk pick of the week showcases the best of the latest products or rate changes to hit the consumer finance market, ranging from mortgages to savings accounts.

As the conflict in Iran has continued, the UK economy has felt the impact. However, due to President Donald Trump‘s extended ceasefire, pressure on markets has marginally lifted.

John Everest, mortgage broker at Everest Mortgage Services, said: “Over the past 48 hours, we’ve seen a small number of high street lenders cut mortgage rates for the first time since the recent Iran conflict began unsettling markets.

“It’s an early sign that pressure on pricing is starting to ease, with the ceasefire, reopening of key shipping routes and falling oil prices helping calm wider financial conditions.

“If that stability holds, we’re likely to see more lenders follow into next week as swap rates settle, which could lead to a gradual easing in mortgage pricing across the market.”