Stick with Santander?

RHeighton

My fixed rate of 2.99% for 2 years is coming to an end in March. I have called Santander to enquire what the rate would be if I go for another fixed rate. They have quoted 2.89% for 2 more years, with no fee. slightly lower than previous rate. I think I should just go for this as it means I do not have to shop around, which would maybe incur fees anyway. My monthly payments are only £370, and I like to have the same amount coming out each month. I did not ask if the rate would have been lower if I go for, say 4 years fixed rate, maybe it would.

Am I right to stay where I am, or would you recommend switching?

If I do switch, does the process involve applying for a mortgage all over again?

Rosie.

JimmyTheWig

Yes, switching will involve applying for a mortgage all over again. You will have to meet another bank's affordability criteria, LTV criteria, etc.
Worth asking what long term fixed rates Santander will offer you. Many people think that rates will stay low for the next 2-3 years and then start rising. Could be that by taking a 2 year fix now you end up coming out of the fix just as rates are rising.
But you'll probably pay more for a longer term fix, so it's up to you.

kingstreet

You need to properly compare;-

- your automatic follow-on rate

- your lender's offer of a customer retention product

- the products available by remortgaging elsewhere.

Take into consideration the fees involved, the rates, any new early repayment penalties and the follow-on rate when the new product ends.

Only you can decide on the period of your new rate, whether two years, or a longer period suits you better.