Santander mortgages applied for from 23 January onwards will transfer to its new follow-on rate (FoR) at the end of the fixed or tracker rate period.
Santander’s FoR is a variable rate that tracks at 3.25% above the Bank of England Base Rate (currently 0.50%), giving a rate of 3.75%.
Products applied for before to this date will continue to move to Santander’s standard variable rate (SVR) at the end of their term.
The differential of 3.25% is guaranteed for as long as customers remain on the product. The rate payable will track all changes in base rate, either upwards or downwards.