Santander end of fixed term

rr755507

Hi Guys,

Later in the year will be ending our fixed term, so I've been checking out various mortgage deals - however Santander don't publish existing customer rates/deals on the web.

Before I call them I wonder if anyone has had experience, and whether their retention deals are in general any good? (ie. better or worse than new customer deals?). House is worth 250k with LTV of around 40%.

Thanks.

missrlr

In same position re finish date and have a much lower LTV ratio than you - best option I was offered yesterday by them was 2 year fix at 4.99% cost £1124! The current SVR with them is 4.99%
Gone elsewhere after investigation.

Also for existing customers the only way you can get what the deals currently are is by calling them

kingstreet

Their customer retention products are pretty poor, IMHO.

Look for remortgage options with another lender, looking to factor-in any transfer costs;-

redemption fee to existing lender
valuation fee
arrangement fee
legal costs.

Many lenders offer a free valuation and free legals and you'll have to compare rates and arrangement fees closely to ensure the overall deal is the best for you.

I'd say at £100k, a medium rate with no/low fee will probably be a better option than a high fee/low rate offer, unless you are going for a longer term, like a five year fix, then you have longer to spread the cost of the fee and the savings on the lower interest payments.

Thrugelmir

CEO of Santander UK has openly said that she wants the bank to focus on lending to business. Whilst reducing mortgage business.

So Santander are taking the opportunity to review their customer base when a new product is requested. Delibrately uncompetitive.

gardenlady_2

We were offered really awful follow on rates for after our fixed rate with Santander finishes next month- 4.59%. We were really concerned, as it would be difficult for us to move to another lender.

I opened a Santander 123 account and hey presto... Suddenly they could offer us a 5 year fix at 3.19%!!! They also offered a 2 year fix for 2.99%. The woman on the phone admitted that the reason we were offered the good rate was because I had opened the 123 account, but said that they weren't allowed to advertise it. I find thet wierd, as other banks advertise better rates for their current account holders.

kingstreet

Most lenders only allow products linked to a current account where the current account has been open for a particular period and a certain amount paid in every month.

Santander may be a little out of line if it allows an account opening, then gives the loyal customer rate that entails, although as an existing mortgage holder, the lines can get a little blurred.

gardenlady_2

I opened the account in November some time, and we got offered the new rate last week. I pay £1000 a month in. I [EMAIL="didn@t"]didn't[/EMAIL] open it because I thought I'd get a good rate, it was just because I got £70 cashback from Topcashback(!) although I'm so glad I did now, as it has saved us a lot of money.

The account isn't linked to the mortgage as such. I really would recommend opening one to all those Santander mortgage customers who, for whatever reason, may find themselves stuck on the SVR at the end of their fixed rate.

RJS86

I'm with Santander at the moment and am staring to think about looking for a new mortgage lender at the end of my fixed term later this year. I also have the 123 account so maybe that would be an option for me. 3.19% Fixed for 5 years sounds good to me. Does anyone know how much they charge to move away from Santander if you move to a different lender after your fixed term has finished?

gardenlady_2

Santander wont charge you anything to leave them if you are at the end of your fixed rate, the new lender you go to may have fees.
We had to pay a £775 fee to Santander to go on the new 3.19% rate though.

kingstreet

Santander charges a £225 "account fee" on the KFI I have in front of me. It may give options on paying it during the term, but you pay it at the end of the term, or when you repay the mortgage, if you don't pay it sooner.

A deeds release or discharge fee, by any other name...

rr755507

gardenlady wrote: »

I opened a Santander 123 account and hey presto... Suddenly they could offer us a 5 year fix at 3.19%!!!

That is very interesting, thank you! The 5 year fix you were offered looks pretty competitive.

We are expecting in a couple of months, so a good deal from Santander may be a simpler option than us trying to remortgage through a different provider. I know certain providers can make you jump through hoops when pregnant/maternity (HSBC/FD).