Early exit offer from Santander fixed rate mortgage

shortchanged_2

Gorgeous_George wrote: »

If it reverts to BofE +0.99% it sure explains why Santander were so thoughtful in offering you a fixed rate and the option to exit early.

GG

I had a similar letter from my mortgage provider as my mortgage will go to 1.10% above the base rate.
'Please feel free to contact us to discuss a new product with you.'

I think for once in my life I might take a bit of a gamble and stay on the follow on rate as I can comfortably afford relatively large interest rate rises as I have quite a small mortgage by modern standards.

IanIan

8LUNNST wrote: »

Andy, true - I think on average the lenders currently borrow at 3%.
QUOTE]

No, even small building societies can borrow from the wholesale markets at 0.8%. They then lend at 4% to 5%. This is why the big banks can afford to pay themselves huge bonuses.

OP2011

8LUNNST

Give your mortgage provider a quick ring and just ask them what your follow on rate is.

If you were with A&L 5yrs ago you will probably get the tracker follow on.

They have written to you to get you on a higher rate if you revert to the 0.99+

Pay the minimum and pay the excess into a high interest account until the rates tip the balance.

0800 0923 881 - free fone number for Santander - may save you a penny

Good Luck, lots may loose the great follow on due to these letters! (If you want the product of course, it is your decision)