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Santander Mortgage Options (when my fix expires)
Options
struggling-breadwinner
Posts: 134 Forumite
Hi everyone ! you need a little background so bear with me.
We did a 3 year fixed Santander mortgage which will end August 2011. Sadly it was fixed when the market was all over the shop at 5.99% which has been horrific for us!
I also changed jobs and too and took a pay cut for a better work/life balance (as it happens that has been a disaster but now isn't the time) despite the pay cut our mortgage at £217,000 against a property value circa £300,000 is still within 3.5 joint salary.
To cut us a bit of slack financially we switched to interest only for a while.
I phoned Santander today about my impending mortgage expiry, they said I could tie into a deal now which would then kick in August when the other ended. Advantage, no panicking about the changes in rates that may/may not occur shortly and no re assessment of income/house value etc
the deals are either 2 yrs fixed at 3.99% (£1000 fee up front)
2 yrs fixed at 4.24% (£899 fee)
and 3 yrs at 4.89% fixed (£699 fee)
On the 2 yr 3.99 deal we can change £100,000 back to repayment , keep £117,000 on interest only and the payment comes down £100 per month so I was proposing to keep the dd set at the current sum and overpay the £100 into the interest only part for a while. Clearly I can bulk that up if need be as the year goes by and we have more cash but I don't want to over commit ourslves on my reduced wage then have to ask to switch more back to interest only and get knocked back
There is a tracker product too but i am not sure i feel very comfortable with that although as at todays date that would be the best deal, who knows when it kicks in august. Its tracking at 2.5% above
Two questions then, 2 yrs or 3 and really REALLY can they charge existing customers a £1000 fee???????
ta !
We did a 3 year fixed Santander mortgage which will end August 2011. Sadly it was fixed when the market was all over the shop at 5.99% which has been horrific for us!
I also changed jobs and too and took a pay cut for a better work/life balance (as it happens that has been a disaster but now isn't the time) despite the pay cut our mortgage at £217,000 against a property value circa £300,000 is still within 3.5 joint salary.
To cut us a bit of slack financially we switched to interest only for a while.
I phoned Santander today about my impending mortgage expiry, they said I could tie into a deal now which would then kick in August when the other ended. Advantage, no panicking about the changes in rates that may/may not occur shortly and no re assessment of income/house value etc
the deals are either 2 yrs fixed at 3.99% (£1000 fee up front)
2 yrs fixed at 4.24% (£899 fee)
and 3 yrs at 4.89% fixed (£699 fee)
On the 2 yr 3.99 deal we can change £100,000 back to repayment , keep £117,000 on interest only and the payment comes down £100 per month so I was proposing to keep the dd set at the current sum and overpay the £100 into the interest only part for a while. Clearly I can bulk that up if need be as the year goes by and we have more cash but I don't want to over commit ourslves on my reduced wage then have to ask to switch more back to interest only and get knocked back
There is a tracker product too but i am not sure i feel very comfortable with that although as at todays date that would be the best deal, who knows when it kicks in august. Its tracking at 2.5% above
Two questions then, 2 yrs or 3 and really REALLY can they charge existing customers a £1000 fee???????
ta !
Unsecured Debt Free Target Date: June 2011
:mad::eek:
Mortgage Free Target Date : 2025:eek:
The best things in life are free
0
Comments
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Whats the follow on rate on the current deal?
General concensus seems to be Santander are rubbish, might be a time to consider an alternative lender.0 -
are they rubbish? Wow, I missed that. i thought they have been quite good to us. SVR at the moment (could change by August when the fix is up) is 4.24%Unsecured Debt Free Target Date: June 2011:mad::eek:Mortgage Free Target Date : 2025:eek:The best things in life are free0
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struggling-breadwinner wrote: »are they rubbish? Wow, I missed that. i thought they have been quite good to us. SVR at the moment (could change by August when the fix is up) is 4.24%
They have been good to us too, we have Alliance & Leicester mortgage and finished a 5 year fixed rate last September. They put us on a SRV rate of 1.25%. :j0 -
struggling-breadwinner wrote: »are they rubbish? Wow, I missed that. i thought they have been quite good to us. SVR at the moment (could change by August when the fix is up) is 4.24%
I think it said it in the Daily Mail so they must be!
They can charge whatever they want, your alternative is to stay on SVR.
I would shop around and look at alternatives, 2/3 years is down to you, where do you feel rates will be in 2 years, and what would the implications be to you?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.0 -
I can confirm that Abbey, or Santander, are rubbish!
I've just phoned to change my mortgage to Interest Only, as its up for sale and I'm wasting money that could be better invested elsewhere, while its on the market. They will not allow me to do this, unless I show them proof of endowement, despite have a savings account with £158,232 in it (with an outstanding mortgage of £128,001)...
A disgrace IMO!:j Only just realised there is an IGNORE button to filter out narcissistic trolls :j0 -
JackRussell wrote: »despite have a savings account with £158,232 in it (with an outstanding mortgage of £128,001)...
A disgrace IMO!
The bank has no right of offset. You could withdraw the savings at any time.
Why not pay off the mortgage? I suspect that I know the answer but will ask.0 -
Thrugelmir wrote: »The bank has no right of offset. You could withdraw the savings at any time.
And they don't have any rights over an endowment unless it is assigned to them.
I don't think any lenders now call for an assignment of policies.0 -
Equaliser123 wrote: »And they don't have any rights over an endowment unless it is assigned to them.
I don't think any lenders now call for an assignment of policies.
Though lenders are increasingly tightening their rules to ensure that a suitable repayment vehicle is in place (and maintained).0
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