Santander mortgage rates set to rise for new products.

Whilst Santander mortgage rates are set to rise, the changes announced are applicable to new products rather than their existing deals. It is also likely that increases will be smaller than most of the recent SVR increases announced by other lenders.

Santander is yet another bank to join the long line of banks and building societies that are raising interest rates on their mortgage products. The announcement of increased rates is just a few days after five of the UK's largest banks published their financial results for last year.

For nearly three years the Bank of England base rate has remained low at just 0.5%. The low rate was intended to make borrowing cheaper for both home buyers and businesses. Santander mortgage rates are among the many that are rising in spite of the low base rate.

Borrowing costs are being driven up by factors such as concern about the Euro zone crisis and the steady rise of the LIBOR. However this rate has recently fallen slightly, due to recent intervention by the European Central Bank and stabilisation of the money markets.

If you are concerned about Santander mortgage rates or the many others that are due to increase on 01 May then contact Deal Direct 'whole of market' brokers. We are working hard to source the best rates on the market and can compare many products to get you the best deal.