Santander Mortgage

aileth

I'm going to prefix this what some will probably think simple and silly question by saying I know pretty much nothing about mortgages, first time I've ever had one and I (bad I know) didn't really pay attention to a lot when our 'mortgage advisor' was talking me through it.

Our mortgage with Santander is ending next month. I have been spammed by emails from the 'mortgage advisor' asking me to get in touch so he can 'organise me another one.' I now have a letter from Santander saying that my mortgage is ending(?) and to call them to organise a deal and it will be going to the standard variable rate, which from the website going off LTV seems to be cheaper than what we were paying as we only put down a small-ish deposit.

Now, can I just leave it at standard variable rate and not set up another mortgage etc seeing as it is a lesser % than what we were on? I can't remember what we were on, it wasn't a fixed rate any way. We are kind of stuck with Santander as it is a shared ownership property 50% and when we went with the mortgage advisor only Santander and RBS were willing to lend and RBS were much higher then.

What are the benefits of just leaving it? Will it cause any problems/disadvnatages etc? Do I have to fix in for another 2-5 years with a fixed or variable rate? I'm rather confused, I'm sorry if this is a basic thing

Thanks.

Jimbo1976

Yes, you can ignore the emails, calls and letters and leave your mortgage where it is and it will go onto the standard variable rate. You don't have to fix if you don't want to. However bear in mind that it is unlikely the SVR will go any lower but it will go up once (if ever) the economy starts to improve.

aileth

Thanks very much. Asked people I know and they were unable to give such a concise answer, puts my mind at rest!

TonyMMM

If going on to the SVR means means paying less than you are now, use the amount you are saving to overpay the mortgage. This will bring the amount you owe down and make a big difference to the total amount you pay over the term. It will also improve your LTV should you wish to remortgage in the future.

When you go onto SVR just speak to Santander and ask to keep the payments at the current level.