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    • lordsainsbury
    • By lordsainsbury 19th May 17, 4:39 PM
    • 7Posts
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    lordsainsbury
    Santander mortgage renewal
    • #1
    • 19th May 17, 4:39 PM
    Santander mortgage renewal 19th May 17 at 4:39 PM
    Hello,

    My current mortgage deal expires in August and I have received a letter from Santander offering me the change to renew my mortgage early with no early repayment charge. Or, I can choose to wait longer until my current product ends and choose a new product then or a completely different provider.

    In the past, I have always just renewed with Santander early when I have received these letters. I would be interested to hear if anyone has received similar letters in the past and chosen to wait until closer to the end of their existing deal. Did the rates offered by Santander improve?

    Thanks in advance.
Page 1
    • kingstreet
    • By kingstreet 19th May 17, 4:50 PM
    • 31,463 Posts
    • 16,814 Thanks
    kingstreet
    • #2
    • 19th May 17, 4:50 PM
    • #2
    • 19th May 17, 4:50 PM
    As usual, the rates will depend on market conditions at the time.

    If the outlook for rates is worse, they will increase, if it gets better they will be reduced.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Lilla D
    • By Lilla D 19th May 17, 4:51 PM
    • 197 Posts
    • 91 Thanks
    Lilla D
    • #3
    • 19th May 17, 4:51 PM
    • #3
    • 19th May 17, 4:51 PM
    Hi,

    Rates are subject to change all the time, so they move up and down - both for Santander and other lenders. If you apply for a deal, then the rate is reserved, so then any subsequent rate increases wouldn't affect you. However, if the rate goes down, you could possibly switch to the new lower rate before the remortgage transaction completes.

    You don't have to wait until your current deal expires to look at what other lenders offer and to apply for another deal from another lender. Most remortgage offers are valid for 3-6 months, so you could apply for a new deal from another lender and just complete when the current deal expires in order to avoid paying the early repayment charge.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • lordsainsbury
    • By lordsainsbury 19th May 17, 9:04 PM
    • 7 Posts
    • 0 Thanks
    lordsainsbury
    • #4
    • 19th May 17, 9:04 PM
    • #4
    • 19th May 17, 9:04 PM
    Thanks for the replies. I just wondered whether in waiting I might be more likely to get an improved offer from Santander. My thinking behind this is they would want to keep me as a customer.
    • Lilla D
    • By Lilla D 19th May 17, 10:12 PM
    • 197 Posts
    • 91 Thanks
    Lilla D
    • #5
    • 19th May 17, 10:12 PM
    • #5
    • 19th May 17, 10:12 PM
    Ah, if you put it like that, then I'm afraid the answer is a definite no. They do not offer you a special deal to keep you. They can only offer whatever rate is available at the time. Insurers can do deals to keep you as their car or home insurance customer, but it's not the case for mortgage lenders.

    Ps. Before someone jumps in, I'll add that yes, there is a new lender, who will tailor their rate to the customer and their risk profile and there is some flexibility for some special cases like high net worth mortgages, but not for an average mortgage renewal like this one.
    Last edited by Lilla D; 20-05-2017 at 6:47 AM.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • ferry
    • By ferry 20th May 17, 9:32 AM
    • 1,582 Posts
    • 246 Thanks
    ferry
    • #6
    • 20th May 17, 9:32 AM
    • #6
    • 20th May 17, 9:32 AM
    This new lender sounds quite interesting. Are they only accessable through a broker?
    Everything takes me 3 hours to post cos I'm using a BlackBerry Playbook
    • clairebeth
    • By clairebeth 20th May 17, 11:02 AM
    • 93 Posts
    • 23 Thanks
    clairebeth
    • #7
    • 20th May 17, 11:02 AM
    • #7
    • 20th May 17, 11:02 AM
    Yes, how interesting, Lilla D!
    • lordsainsbury
    • By lordsainsbury 20th May 17, 5:13 PM
    • 7 Posts
    • 0 Thanks
    lordsainsbury
    • #8
    • 20th May 17, 5:13 PM
    • #8
    • 20th May 17, 5:13 PM
    That's great, thanks Lilla.
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