Santander Introduce the Stoozable Overdraft

Degenerate

They're abolishing debit interest and moving to daily fees like Halifax before them:

http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&canal=CABBEYCOM&cid=1237880423035&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateG

The interesting thing is that they have capped the monthly fees at a sufficiently competitive rate - £7.50 for the preferred overdraft account - to turn their overdraft facility into a potentially stoozable method of borrowing. If one had their maximum £5K overdraft, the £90 of fees you would rack up for maxing it all year is only 1.8% of the money borrowed. Maxing my current £3600 limit would cost the equivalent of 2.5%. And best of all, it's not a limited duration offer.

I'm seriously tempted to ask for an extension, but nervous they may have changed their criteria and will take the opportunity to reduce rather than extend the facility.

YorkshireBoy

Been stoozing a £10K A&L Premier Direct overdraft facility for over two years now, and I'm amazed they haven't cottoned on by now! Costs me 0.6%, with some is offsetting a 3.75% mortgage and the rest sits with LTSB Vantage making 3.2% AER net.

My 'cost' next month moves to 1.2% (20 day cap on my account type), so still workable.

One downside is the damage to my credit file...being overdrawn (constantly) by £9,995 on a current account doesn't look good at all. Then again, the £250+ (soon to be £190) it makes/saves me each year helps ease the pain.

Degenerate

YorkshireBoy wrote: »

Been stoozing a £10K A&L Premier Direct overdraft facility for over two years now, and I'm amazed they haven't cottoned on by now!

Interesting. I thought Santander's max O/D facility was £5K, am I mistaken or have you been "grandfathered in" from A&L?

My £3.6K took some getting (requesting gradual increments over years), and that's with over £50K a year through the account. What sort of income or other requirements did you have to blag £10K?

whatyadoinsucka

my A&L is £2.2k, and even that is well over the overdrafts offered by A&L in there t&cs,
£5k is brilliant i worry everytime i call the bank incase an over eager callcentre employees spots it and send sout the letter.

just out of interest if santander/A&L demanded full payment could you afford to clear the overdraft within a 30 days period

YorkshireBoy

Degenerate wrote: »

I thought Santander's max O/D facility was £5K, am I mistaken or have you been "grandfathered in" from A&L?

Migrated from A&L.

My £3.6K took some getting (requesting gradual increments over years), and that's with over £50K a year through the account. What sort of income or other requirements did you have to blag £10K?

Halifax offered me a £10K facility (they saw my salary and 'throughput'...which was a mixture of stoozing funds and savings account transfers as this was my main 'hub' account) so I accepted it, took a screen print, printed a statement or two (showing £40K per month going through), and sent it all off to A&L. Initially they'd only go to £5K but I persuaded their switching team to get it doubled!

The account still only sees £500 per month cycled through it and, perhaps crucially, still has a couple of small SOs set up on it to show some 'activity'.

Degenerate

YorkshireBoy wrote: »

(showing £40K per month going through)

That'd do it!

planteria

"Been stoozing a £10K A&L Premier Direct overdraft facility for over two years now"

i'm impressed YB

downshifter98

I have the preferred in credit account, does anyone know if it's possible to contact Santander and just have this changed to the preferred overdraft version - I have a £2200 o/d limit and reckon that the new system works out at roughly 4% (compared to 6% for the in-credit a/c) which would be worth using IMHO.

Thanks in advance.

planteria

good question downshifter. i will be interested to learn how you get on....just ask them.
when my PIC 5% expires, in September, i will ask them about giving me an OD. if they will give me 5k i'll follow YBs lead. otherwise, i'm off:T