Santander Tracker Mortgage

jim2

Just making people aware of the slightly sneaky way Santander add charges to Mortgages.
Im just coming to an end of an Alliance and Leicester 2 year fixed rate so phoned Santander to see what was on offer.To cut to the chase I narrowed products down to 2 Tracker products,1 at base +2.09% with a fee, and the 2nd base +2.49% without a fee.I agreed to the 2nd deal (pet hate of mine is paying fees when Ive a good credit history).
The Adviser went through all the verbals and near the end she mentioned of a charge(£225)to be paid up front or if I wish once the mortgage is finished,the latter being the more attractive obviously!
Just making consumers aware,fees free mortgages,with Santander anyway,very rarely are.
Annoyed,to say the least.Any advice?

kingstreet

Is this the deeds release fee, or mortgage account fee?

These used to be charged when you repay the mortgage when you change lenders or at the end of the term, but it's become fashionable to pay it upfront, or spread over the term (Halifax).

I don't have a problem with lenders charging fees as long as they are explicit and clear.

Ask them to send you a key facts illustration before you commit yourself to the offer. It is a FSA requirement.

jim2

Thanks for the reply,much appreciated.Yes its a Mortgage account fee.I have the option to either pay on completion or defer until end of mortgage,no invitation to add it to loan.
Its just the slightly shady way in which they sneak it into the offer near the end.

daisylou_466

I agree Jim2. I am also nearing the end of a 2 yr deal with A&L and they want to charge me to stay with them (or Santander as it is now). Two years ago when I renewed with them they offered the best rates on the market and didn't charge me to stay with them. Seems they don't want customer loyalty or are maybe assuming their customers will simply stay with them as it's the easiest (if not cheapest) thing to do.

Thrugelmir

jim2 wrote: »

Its just the slightly shady way in which they sneak it into the offer near the end.

Fee has always been charged on redemption of a mortgage.

If you wait to the end of the mortgage term the fee will increase.

jim2

Sorry but I beg to differ. Santander do state that the mortgage exit fee won't increase if its delayed until its paid up, something I suppose !
Maybe a levering tool when considering changing to a different bank ?

Thrugelmir

jim2 wrote: »

Sorry but I beg to differ. Santander do state that the mortgage exit fee won't increase if its delayed until its paid up, something I suppose !
Maybe a levering tool when considering changing to a different bank ?

Maybe just an offer in the current market to attract remortgaging customers.

In light of low new net lending.

jim2

Just to make applicants aware of these "stealth" charges.