Santander robbing us blind!!!

ripper1001

My mortgage is with Alliance & Leicester which is now owned by the Santander group. I just happened to notice the other day that Santanders SVR is 4.24% but i am still paying A&L's 4.99%, surely this can't be allowed to happen? When i rang up to complain about it they just said they haven't changed over the mortgage customers yet and they don't know when they will be either. I'm currently paying £500 per month interest only so changing onto this rate would be an immense help to me. Anyone else experience this?
Thanks
Paul

Thrugelmir

Just because A&L is part of Santander doesn't mean that mortgage rates will become standardised. Santander will be running down A&L's mortgage book so no doubt will be maintaining unattractive rates in order to encourage people to remortgage elsewhere.

To reduce interest charges, you need to start repaying the capital balance.

ripper1001

Easier said than done!!!

Originaldagi

A couple of months ago I contacted Santander to see if I could move to interest only on my mortgage as my husband (the principal breadwinner) was dying of cancer.
I received a letter telling me to ring to discuss it further.
In the mean time my husband died so when I rang the number they gave I told the woman and she looked at my mortgage and said she could extend it by 25 years :eek:. Then when her computer couldn't come back with an answer quickly enough she suggested that I buy an new mortgage product even though she could see I was in a contract with ERC's.
According to the government handbook they give you when a relative dies a mortgage company should give you a period of grace while you sort the deceased affairs out but apparently that doesn't apply to Santander.

neas

gotta love which banker ever invented interest only repayment mortgages. Your paying £500 in rent to your bank.... your not getting any closer to owning the home... which is monumentally reckless.

ripper1001

Hi
I'm really sorry to hear about your recent loss. Typical Santander so insensitive and unhelpful. I've had so many problems with this bank!

Thrugelmir

[QUOTE=Originaldagi;42839702
According to the government handbook they give you when a relative dies a mortgage company should give you a period of grace while you sort the deceased affairs out but apparently that doesn't apply to Santander. [/QUOTE]

The existing mortgage still continues if that's what you are refering to. The interest charges aren't suspended.

ripper1001

I just can't afford to pay off any capital so what am i supposed to do? I'm stuck!!

Thrugelmir

ripper1001 wrote: »

Easier said than done!!!

Have you tried the Debt Free Wannabe board?

kingstreet

neas wrote: »

gotta love which banker ever invented interest only repayment mortgages. Your paying £500 in rent to your bank.... your not getting any closer to owning the home... which is monumentally reckless.

A useful tool for some borrowers, abused by some people to artificially reduce mortgage payments in an inappropriate manner.

ripper1001

And who do you think would abuse it?