Santander Raises Fixed Mortgage Rates by Up to 0.3%

Santander increased its new business fixed mortgage rates by as much as 0.3% from 22 July 2026, according to Santander for Intermediaries. Report that as a single lender moving and you miss the story. The data shows this is one of several major lenders repricing within the same fortnight - and the underlying driver is the same for all of them.

What Santander Changed

Higher LTV (loan-to-value) products took the steepest increases, with some deals repriced by the full 0.3% (Santander for Intermediaries, July 2026). Alongside the rate rises, Santander extended its 10-year fixed range for first-time buyers and home movers across LTV bands from 85% to 95%. Specific rates from that range: 5.49% at 85% LTV with a £999 fee, or 5.59% fee-free; 5.59% at 90% LTV with a £999 fee, or 5.69% fee-free; and 5.80% at 95% LTV on a fee-free basis (Santander for Intermediaries, July 2026). New 2- and 5-year fixed rates with a £1,499 fee also arrived for new build clients.

Landlords reviewing their portfolios can use the buy-to-let stress test calculator to model the revised numbers. As product rates rise, lenders adjust their stress test thresholds in lockstep - squeezing the ICR (interest coverage ratio) headroom on refinancing deals.

Why Lenders Are Repricing Now

Santander is not acting alone. HSBC and Coventry Building Society both notified brokers of fixed rate increases on 8 July 2026, the same day a Middle East ceasefire collapsed and Brent crude jumped more than 3% to around $76 a barrel (The Intermediary, July 2026). The cause is straightforward: two-year SONIA (Sterling Overnight Index Average) swap rates climbed from 3.978% to 4.177% over this period; five-year swaps moved from 4.008% to 4.231% (Heron Financial, July 2026). Fixed mortgage pricing tracks swap rates closely. Swaps rise, products follow.

The Bank of England held Bank Rate at 3.75% on 30 July 2026, voting 6-3, with three members voting for an immediate rise to 4% (Private Finance, July 2026). That split tells you the cutting cycle many borrowers were counting on is stalling. The Moneyfacts average new mortgage rate rose 0.12% between July and early August, from 5.47% to 5.59% - with average two-year fixed rates now at 5.63% and five-year at 5.66% (The Intermediary, August 2026).

What This Means for Landlords

Year-on-year, the average new mortgage rate is up materially from the lows that briefly emerged in early 2025. The trend is now clearly moving in the other direction, and the gap between product rates and rental yields is the key number to watch.

Investors currently on a variable rate or approaching a fixed-rate expiry face a narrower set of options at each repricing cycle. The mortgage finance and negotiation guide on Property Filter covers how to structure broker conversations in this environment. For a wider view on portfolio positioning, the property investment strategies blog and the free resources hub are worth reviewing before your next refinance decision.

Key takeaways

• Santander raised new business fixed rates by up to 0.3% effective 22 July 2026, with higher-LTV products facing the largest increases.

• New 10-year fixed rates now cover 85% to 95% LTV, starting at 5.49% (85% LTV, £999 fee) and rising to 5.80% (95% LTV, fee-free).

• Two-year SONIA swap rates rose from 3.978% to 4.177% in July 2026, pulling fixed product pricing upward across multiple lenders simultaneously.

• The Bank of England voted 6-3 to hold Bank Rate at 3.75% on 30 July 2026, with three members preferring a rise to 4%.

• The Moneyfacts average new mortgage rate reached 5.59% in early August, up 0.12% in a single month.