Santander won't give me another fixed deal

so84

Santander sent me a letter to renew my fixed rate mortgage as from May I will be on the standard variable rate. However because a credit risk due to a few default (not with themselves) they wont fix my mortgage again so I will have to go on a standard variable rate from May. This at present is 4.,74% so my mortgage will go from £671 to £752 a month. I don't understand why they cant fix it, if im a risk surely fixing me on a fixed rate that means fixed lower payments means they can better guarantee my payments? My mortgage will stay with them regardless so why not fix it? what difference does it make if they fix me or not? Ive paid them on time every month for 6 years....... im just so confused by it and my LTV is 70%. Do I have the right to complain to them? I obviously cant move my mortgage as my credit rating is non existent. I am stuck

Gary_zero

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You've answered your own question there. They will offer you a deal to stop you leaving but they know you can't leave so they can charge you whatever they want, what can you do. Sad but true.

JimmyTheWig

You have the right to complain, but they won't uphold your complaint.
You have the right to take it to the Ombudsman, assuming Santander reject your complaint. Again, I don't think the Ombudsman will uphold it, either.

Basically, they are allowed to offer you what they want.
As Gary_zero says, they have no risk of losing you as a customer, so why would they charge you less?

In terms of their logic, I guess it makes sense for them to get as much money from you while they can. If you default in, say, a year it is better for them to have had £752 a month from you rather than £671 a month for the next year.

But really it comes down to "because they can".

so84

Thanks for your advice. Yep its because they can!

From your experience does anyone know how much the SVR fluctuates, like could my next monthly payment be £850, £950 etc?

Thanks again.

Dan-Dan

This is the same sort of thing as when a client cant pay their unsecured loan/credit cards , and the bank carrys on applying interest , they know they are not likely to get it anyway , but they CAN do it , so they do

kingstreet

Unless you have told them, they will not know about your credit problems. They don't do any checks once the account is operational.

Are you on interest-only, by any chance? That can be one reason why a new deal isn't being offered.

JimmyTheWig

so84 wrote: »

From your experience does anyone know how much the SVR fluctuates, like could my next monthly payment be £850, £950 etc?

The good news is that each bank only has one SVR. They can't put _your_ SVR up without putting everyone else's up. So it's not something they can use to sting you.

Generally an SVR will only move with changes to the Bank of England Base Rate.
Having said that, Santander put theirs up from 4.24% to 4.74% some months ago without a change from the BoE. But that's the first time it has changed in the last few years.

so84

Kingstreet, the guy on the phone said no fixed deals are coming up for you, it could be if you have a poor credit file or if your LTV is not enough etc....

I am on repayment and have paid them on time every month for 6 years since I have taken the mortgage. I have lots of equity in there too. I did think that they didnt do any checks after i had the mortgage, thats why it has really upset and confused me - I thought my mortgage was safe as this is one of my priority payments. I didnt have difficulties paying this but if they make me pay more it could become a problem in the future.

Gizmo247

Similar situation to here https://forums.moneysavingexpert.com/discussion/4434133

Thrugelmir

so84 wrote: »

Santander sent me a letter to renew my fixed rate mortgage as from May I will be on the standard variable rate. However because a credit risk due to a few default (not with themselves) they wont fix my mortgage again so I will have to go on a standard variable rate from May. This at present is 4.,74% so my mortgage will go from £671 to £752 a month. I don't understand why they cant fix it, if im a risk surely fixing me on a fixed rate that means fixed lower payments means they can better guarantee my payments? My mortgage will stay with them regardless so why not fix it? what difference does it make if they fix me or not? Ive paid them on time every month for 6 years....... im just so confused by it and my LTV is 70%. Do I have the right to complain to them? I obviously cant move my mortgage as my credit rating is non existent. I am stuck

In no particular order:-

- Banks need to improve lending margins
- Your credit profile doesn't score highly
- Banks need to obtain fixed term deposits in order to lend for fixed term mortgages.
- Lending is limited
- BOE base in July 2007 was 5%. At normal rates SVR's should be around 7%. So 4.79% is a good rate. Savers are subsidising you.