Santander Cuts Rates by up to 0.20 Per Cent & Introduces Two New Two Year Fixed 80 Per Cent LTV

LONDON, January 21, 2011 - From Friday 21 January, Santander will introduce a selection of changes
to its current range of mortgages (
products.santander.co.uk/mortgages.html) including the reduction of
its two year tracker rates and the introduction of two new two year fixed 80
per cent LTV deals:

    - Rate reduced by 0.20 per cent on two year tracker at 75 per cent LTV,
      now 2.69 per cent with GBP995 fee

    - Rate reduced by 0.10 per cent on two year tracker at 75 per cent for
      homebuyers, now 2.69 per cent with GBP995 fee

All the above come with either a Homebuyer or Remortgage Solution. The
Homebuyer Solution offers borrowers the added benefits of a free basic
mortgage valuation and GBP250 cash-back on completion, while the Remortgage
Solution offers a free basic mortgage valuation, and either free legal's or
GBP250 cash-back on completion.

In addition to this, the Home of UK Mortgages has also improved its
higher LTV offering by adding the Homebuyer Solution to two of their 90 per
cent LTV deals:

    - Three year fixed for First Time Buyers at 5.99 per cent, 90 per cent
      LTV and GBP799 fee

    - Two year tracker at 4.99 per cent, 90 per cent LTV and GBP495 fee

Phil Cliff, Director of Santander Mortgages said: "We're pleased to offer
our latest range of competitive deals which includes not only another
reduction in the rates on offer but also the introduction of the Homebuyers
Solution for a selection of our 90 per cent deals. We continue to look at
ways to support first time buyers and believe this change will do just that,
helping them to manage costs from the outset. As the 'Home of UK mortgages',
we want to ensure we can provide customers with a good variety of products to
suit their needs, demonstrating our ongoing support of the UK housing
market."

The information contained in our press releases is intended solely for
journalists and should not be used by consumers to make financial decisions.

Notes to Editors:

1) The Current Account mortgage range is available to existing
customers who have held their main bank account with Santander for more
than three months. All Investment customers qualify except those with
Cash ISAs only.

About Us

Banco Santander (SAN.MC, STD.N, BNC.LN) is a retail and
commercial bank, based in Spain, with presence in 10 main markets. Services
include personal bank accounts (
products.santander.co.uk/bankaccounts.html), insurance and loans. At
the close of June 2010, Santander was the largest bank in the euro zone by
market capitalization and, at the end of 2009, fourth in the world by profit.
Founded in 1857, Santander had EUR 1,365 billion in managed funds. Santander
has more than 90 million customers, 13,671 branches - more than any other
international bank - and 170,000 employees. It is the largest financial group
in Spain and Latin America, with leading positions in the United Kingdom and
Portugal and a broad presence in Europe through its Santander Consumer
Finance arm. In the first half of 2010, Santander registered EUR4,445 million
in net attributable profit.

In the UK, Santander was formed out of the Abbey, Bradford &
Bingley and Alliance & Leicester retail networks. It has over 1300 branches,
around 4,500 cash machines and provides a full range of retail and corporate
banking services to 25 million customers.

Media Enquiries: Nicola Hussey Tel: +44(0)20-7756-4209; Siobhan O'Shea Tel: +44(0)20-7756-4189; The press office operates from 8.00am to 6.00pm. Outside of these hours
please call +44(0)800-5877708.