Santander/Alliance and Leicester

donz23

I have received a letter from Alliance & Leicester (Santander) advising me that my 5 year fixed rate has come to an end. In the letter it states my new intrest rate will be 1.25%!!!!

I was paying 4.99%!

Now I'm pretty sure this new rate is not right!

My dilema is do I phone them to query it or just leave it? I am worried it will catch up with me if I just pay the 1.25% as stating in my letter. What are my legal rights? I am worried they will turn round in 6 months time realising the error and make me pay the difference. I will be saving £200 month with this new rate...

Any advice would be so helpful.

Thankyou

donz23

Thanks for your reply, however its not a tracker its a fixed rate for 5 years which is now going to SVR which on A&L website is 4.99% whereas I have received letter saying 1.25%

Thanks

property.advert

Some end of term products may have had a clause saying (base plus 0.75%) which would make yours 1.25% now. Not all simply just revert to the SVR.

AbbieCadabra

our fixed rate with A&L ended & we now pay 1.25%, in the small print it confirmed it reverted to 0.75% over base rate for the rest of the term,. i'm sure yours will be similar. we're overpaying £500 a month at the moment as savings rates are so low & have seen what would be our regular monthly payment go from £290 to £200 in a year.

waterwatcher

Same for me! 0.75 above base rate when my 5 year fixed comes to an end but unfortunately for me not until October by when the rates will probably be going up!

donz23

just checked my terms and yes mine does go to 0.75%! woo hoo! thanks for your help!

dimbo61

If you ring them up and ask for your mortgage payment to remain static ( ie the same as you are currently paying ) you will save thousands of pounds in interest over the much shorter life of the mortgage and you wont notice any difference in your standard of life what so ever.
If interest rates do start to rise you wont have to worry about that until the interest rate hits 4.25%

property.advert

Some people have base minus X and are paying zero (or actually £1.00 or £0.01 I cannot remember) and effectively have their loan interest free. If their was no clause to prevent the bank having to pay them say at base minus 1% then they would be getting paid for borrowing the money !!!!