Santander SVR Increase

Thrugelmir

Eellogofusciouhipoppokunu wrote: »

I thought you couldnt move house if you were in negative equity?

Given time paying the debt down will correct the situation. If someone can afford a larger mortgage. Then directing the money this would cost into the existing mortgage would improve the situation speedily as well.

With no little to no equity in a property then moving house is unlikely in any event for the majority. As lenders have tightened down on the amount they will advance.

koexelek

Eellogofusciouhipoppokunu wrote: »

Are you stuck on SVR or can you change to a deal?

I guess it will only be mortgage prisoners who stay on a rate like that.

fluffymovie

I got the same letter but I am not entirely sure how I can calculate the additional payment? My mortgage is £100k and our current repayment is £660.66 pcm. Could anyone show me how to calculate the increased amount?

Was I dreaming or are there fixed rates out there of below 4% for those with a good LTV. We have about 60% equity?

Eellogofusciouhipoppokunu

Thrugelmir wrote: »

Given time paying the debt down will correct the situation. If someone can afford a larger mortgage. Then directing the money this would cost into the existing mortgage would improve the situation speedily as well.

With no little to no equity in a property then moving house is unlikely in any event for the majority. As lenders have tightened down on the amount they will advance.

Depends on how deep into NE the person is. With mortgages as large as they are these days, it doesn't take too much of a percentage drop to put people in NE to the equivalent of a year's worth of disposible income and above. With other prices such as food, energy and fuel going up it's hard to see too many people with free income to make extra mortage payments. On a repayment mortgage all the interest is loaded up front so very little capital is paid off. I dont see how someone in this situation would be able to get out of NE without help from HPI and with HPI the next rung of the ladder moves away.

I'm still not seeing the silver lining.

Eellogofusciouhipoppokunu

koexelek wrote: »

I guess it will only be mortgage prisoners who stay on a rate like that.

Always worth asking the question. Some people just like to moan but do nothing about it. There are enough who bemoan their savings rate yet stay with the same bank they joined as teens.

sdavies13

I have had this letter, however I have also contacted Santander to see what other mortgage deals they could offer me.

After a chat with the nice women on the phone they have offered me a 5 year fixed rate deal for 2.99% (open to existing customers, not sure if that meant mortgage or banking as I have both with them). There is an arrangment fee of around £1400.00 but no valuations needed (and they have currently put the fee onto the mortgage balance).

Perhaps this might help others...

Bradden

Thanks sdavies... I'm not sure how good a deal that is though.. £1400 to fix seems like an awful lot.. will you really save over the 5 years?

opinions4u

Bradden wrote: »

Thanks sdavies... I'm not sure how good a deal that is though.. £1400 to fix seems like an awful lot.. will you really save over the 5 years?

Depends on the size of the mortgage.

A £140k debt means a £1,400 fee averaged over 5 years is just 0.2%.

So would a 3.19% fix over 5 years be a good deal?

themull1

fluffymovie wrote: »

I got the same letter but I am not entirely sure how I can calculate the additional payment? My mortgage is £100k and our current repayment is £660.66 pcm. Could anyone show me how to calculate the increased amount?

Was I dreaming or are there fixed rates out there of below 4% for those with a good LTV. We have about 60% equity?

You can use the mortgage calculator on here, and put the new rate in to see what the difference will be.