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January 09.2026

2 Minutes Read

InterBay and Santander Rate Cuts: What This Means for Financial Institutions

InterBay and Santander rate cuts symbolized by downward arrow.

InterBay and Santander Offer Hope with Recent Rate Cuts

In a significant shift in the mortgage landscape, InterBay has enacted cuts of up to 50 basis points on its commercial mortgage rates, a move that signals newfound optimism within the sector. Meanwhile, Santander is poised to trim rates across various residential deals starting Monday as part of an effort to attract new customers and support existing ones amidst changing economic conditions.

The Details Behind InterBay's Commercial Rate Reductions

InterBay, a key player within the OSB Group, has made strategic adjustments to its semi-commercial product range, now starting at 5.34% for two-year fixed rates and 5.89% for five-year fixed rates. These enhancements include a flexible arrangement fee ranging from 1% to 4%, tailored for diverse borrowers. Additionally, a 20 basis point reduction has been instituted for its commercial owner-occupier products, with fixed rates starting from 6.39% for two-year terms.

Marc Callaghan, the head of commercial lending at InterBay, emphasized the growing demand within the commercial market, which has prompted these reductions. “We’ve been able to move quickly to support our brokers and their clients with tangible benefits such as rate reductions and lower fees,” he stated.

Santander's Timely Response to Market Needs

Santander’s rate adjustments aren’t far behind, with reductions on products for home movers, specifically in the 75% to 95% loan-to-value range. Two-year fixed rates will see a decrease of up to 10bps, while three- and five-year fixes will be trimmed similarly. Such moves reflect Santander's ongoing assessment of the competitive climate, especially after postponing its third quarter results due to external factors related to the car finance compensation scheme.

Market Trends: A Bright Horizon?

Industry experts like Rob Jupp, CEO of Brightstar, have lauded InterBay's decision, attributing it to a broader trend of decreasing base rates set by the Bank of England. Jupp notes, “With investors increasingly focusing on high street properties, many are integrating residential units alongside retail spaces to optimize their investments.” This shift may herald a renaissance for high streets long in need of revitalization.

The Importance of Staying Informed

These strategic rate cuts from two significant lenders not only provide immediate financial benefits but also reflect a larger trend in the market, emphasizing the importance of awareness and adaptability for brokers and investors alike. Keeping abreast of these changes can facilitate better decision-making for those seeking to maximize their investments amidst evolving economic landscapes.

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InterBay and Santander Rate Cuts: What This Means for Financial Institutions

InterBay and Santander Offer Hope with Recent Rate Cuts

The Details Behind InterBay's Commercial Rate Reductions

Santander's Timely Response to Market Needs

Market Trends: A Bright Horizon?

The Importance of Staying Informed

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