NOTICE TO HOLDERS OF EARLY REDEMPTION

SANTANDER UK PLC

 (the "Issuer")

NOTICE TO HOLDERS OF EARLY REDEMPTION

Yen 15,000,000,000 5.56 per cent. Undated Subordinated Notes,

ISIN: XS0053134499

(the "Notes")

NOTICE IS HEREBY GIVENto the holders of the above-mentioned Notes that, in accordance with Condition 5(b) (Optional Redemption or Exchange) thereof, the Issuer intends to redeem the Notes in full on the Interest Payment Date falling on 31 January 2015 (the "Redemption Date"), having obtained the consent of the Prudential Regulation Authority for such redemption. The Issuer will also request the cancellation of the listing of such Notes on the Official List of the United Kingdom Listing Authority with effect on and from the Redemption Date.

For further information, please contact:

Dated: 16 December 2014

Additional information about Santander UK and Banco Santander

Banco Santander (SAN.MC, STD.N, BNC.LN) is a retail and commercial bank, based in Spain, with a presence in 10 main markets. Santander is the largest bank in the euro zone by market capitalization. Founded in 1857, Santander had EUR 1.34 trillion in managed funds, 107 million customers, 13,225 branches - more than any other international bank - and 183,648 employees at the close of June 2014. It is the largest financial group in Spain and Latin America. It also has significant positions in the United Kingdom, Portugal, Germany, Poland and the northeast United States. In the first half of 2014, Santander registered EUR 2.756 billion in attributable profit, an increase of 22% from the same period of the previous year.

Santander UK is a leading financial services provider in the UK and offers a wide range of personal and commercial financial products and services. As at 30 September 2014, Santander UK serves more than 14 million active customers with c. 20,000 employees and operates through some 940 branches and 58 regional Corporate Business Centres.

Banco Santander, S.A. has a standard listing of its ordinary shares on the London Stock Exchange and Santander UK continues to have its preference shares listed on the London Stock Exchange.