Santander - Will offer me a repayment mortgage but won't tell me the interest rate

taliwillow · 11 December 2012 at 12:56PM

I have just spoken to Santander as my fixed rate on my interest only mortgage is due to end in 3 months(ish). The rates they have offered me aren't terribly competitive and due to various things it could be costly to change lenders so we feel we have to stay with them. We would like to start making overpayments/go on a repayment mortgage as we are now in a position to do so. So I wondered if they may offer me a better rate if I am on a repayment mortgage as I would imagine that would be better for them as I am committed to pay off some capital. They have told me that it would be fine for me to change to a repayment mortgage but they wouldn't be able to tell me what interest rate they would offer me until I have already committed to go onto the repayment mortgage. Obviously I am not happy doing that as they could then offer me a silly rate that I can't afford but I could also be missing out on a better rate. Can they really do this? Surely they have to tell you what rate you are committing to before you change? Although now I'm writing this I have just realised that chances are they would be expecting me to commit to a repayment mortgage at their SVR and then when I have agreed to that then they could tell me what fixed rates they would offer against that mortgage. I still don't see why they can't tell me the fixed rate options now though?

Sorry that ended up being more thinking out loud rather than a question didn't it?

houseiseverything · 11 December 2012 at 1:45PM

I am having exactly the same problem with Santander! However, they have told us its the SVR or nothing. I spoke to a mortgage broker yesterday and he said Santander are notorious for this. they draw you in on a good rate then only offer the SVR at the end of it, so those who can move do and those who can't stay stuck with them. I have calculated that if I have to stay with Santander then I will pay £2.5 k a year over the odds(ie what I could get elsewhere). I am desperately trying to remortgage, but have a complicated situation due to my partners credit rating, as he has recently lost his business and has some debts from it. I actually hate Santander at the moment, properly hate them.