Santander has announced that 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.
Products applied for prior to this date will continue to move to Santander’s Standard Variable Rate (SVR) at the end of their term.
Santander’s new FoR is a variable rate that tracks at 3.25% above the Bank of England Base Rate (currently 0.50%), giving a current rate of 3.75%.
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.