Mortgage question

Ctred

Hello

I bought my first home in July 2011 and because of my limited deposit and lack of products available I was tied into a 5% rate of interest with Santander for 2 years. This term is about to end and my mortgage will go onto the standard variable rate.

I am new to mortgage switching and would be grateful of any advice on what to do next.

I would basically like to know;

Roughly what rate I can expect to pay percentage wise after my fixed term ends and which companies currently offer the best rates for mortgage switching?

Is this dependant on my circumstances? I.e. household income, savings etc.

Is 5% a high rate in the current climate?

I would be very grateful for any advice.

Thanks

Christopher

ACG

Santanders standard rate is 4.74% so you should see a little decrease in your payments.

Options going forward:
Stick on the SVR,
Ask santander what they can offer you,
Look elsewhere and switch lenders.

As for the rates available, it will largely depend on the property value and the mortgage amount as this will determine the loan to value (LTV).

It will also depend on your income, credit history among other things - but thats more so if your looking to switch lender. If your not sure, it might be worth a chat with a Mortgage Advisor?

Ctred

Thanks

Would you be able to give me a rough idea of what someone with a perfect credit history, owes about 165k on a mortgage (property worth about 200k) household income of around 70k would pay on average as a percentage?

Thanks again

Christopher

ACG

Just done a quick search and around 3-3.5% should be possible.

Ctred

Thanks for your help just one last thing, would that 3-3.5% mean switching company and if so how straightforward/costly is this.

Thanks

ACG

Yes it would mean switching.
Its a case of a new application and valuation being done. All in all should take around a month.

Valaution and legals are usually free, you would have to pay a deeds release fee from nationwide and any application fee for the new lender.