Santander remortgage offers - any opinions

sitesafe

Hi

My Santander mortage balance is £65,850 on a repayment with 20 years and 3 months left. Property value approx £100K.

I need to stay with Santander. Always paid mortgage on time and careful with money but not so good with figures. I am currently on Tracker .99 + base (so 1.49) and pay £312.48 a month, but term ends in September going onto the SVR (currently 4.24).

These are the options I was offered:

Flexible LIFETIME Tracker - 2.99 + base 0.5 (=3.49) and FEES £799 and £100 transfer (can be added to the term). No ERC.
(monthly cost with additions £386.92)

Flexible OFFSET LIFETIME Tracker 3.00 + base 0.5 (=3.50) and FEES £799 (can be added). No ERC.
(monthly cost with additions £389.80)

3 YEAR Tracker - 2.99 + base 0.5 (=3.49) and £100 transfer fee. (monthly cost £379.89)

4 YEAR FIXED - 4.79 and £100 transfer fee.
(monthly cost £424.48)

5 YEAR FIXED - 4.99 and £100 transfer fee.
(monthly cost £431.75)

Does anyone have any advice as which is a decent offer?

Many thanks

shortchanged_2

Ok, you don't say why you need to stay with Santander.

You say you are careful with money so what is the problem?

sitesafe

shortchanged wrote: »

Ok, you don't say why you need to stay with Santander.

You say you are careful with money so what is the problem?

Just asking for advice as that's what I do here...

Reasons for having to stay with Santander are pretty irrelevant just that I have to so if you've any advice based on the information given please feel free - greatly appreciated. TVM

shortchanged_2

It's not necessarily irrelevent, all it's doing is seriously limiting your options.

sitesafe

shortchanged wrote: »

It's not necessarily irrelevent, all it's doing is seriously limiting your options.

hi

thanks, i understand, but my circumstances have changed in that i've gone from employed to self-employed in the past year so my income has dropped somewhat so feel it's best to sit tight /where i am and consider what's on offer with current provider as i don't think many offers will be on the cards from new providers...?

shortchanged_2

In that case if you are unsure about your income over the next few years it may be a good idea to fix as at least you can plan and budget your finances better.

Although it looks as if interest rates may stay on the low side for some time, no one knows for sure what could happen with them.

I suppose the question you need to answer is how much of an interest rate rise you could afford when they do start to rise if you went down the tracker route.

Naf

All of the new customer tracker products come as a 'track and fix' deal, where you can take the tracker (as the rates are currently lower than the fixed) but then transfer onto a fix at any point you like with no extra fees to pay either now, or at the point you change. This way you can benefit from the lower rate of the tracker for as long as you feel safe on it, and switch to a fixed rate (although it'll be whatever fixed rates are available at the time you change) when you catch a whiff of rates rising. There's still some risk involved, as if rates rise sooner rather than later you might end up on a higher rate than the current fixed... but it means you don't just end up on SVR.
Double check if your deals come with the same option.