Changing Mortgage Type with Santander

uk_messer

Hello All,

Two year tied mortgage about to come up with Santander at which point the rate changes to SVR. Have looked at various options at this point available from them and one is called a Lifetime Tracker. It has a lower rate than SVR but there appears to be no penalty - i.e. you can pay off the full mortgage at any time. There is a booking fee of £400 odd but that should be countered by two months worth of payments being cheaper.

Is there anything I'm missing here that staying with SVR at end of tie-in would benefit me?

Thanks :-)

kingstreet

Have they actually supplied details of this product to you? You aren't looking at online rate for new borrowers/remortgagors are you?

There are no benefits to being on SVR, other than the right to repay the whole mortgage whenever you like, without penalty. If you get that from a tracker with a lower rate, you may save money, after taking any fee into account.

uk_messer

Hi kingstreet, no these offers were noted on the phone by the co-mortgagee as for someone coming to an end of the tie in period.

kingstreet

If you are being directly offered that product it sounds ok.

Your call on how well it suits your circumstances.

ashleypride

Have you compared monthly's with Coventrys lifetime tracker? (You need to pay Santander a redemption fee after the tied term to leave which is usually £225.00)

http://www.coventrybuildingsociety.co.uk/mortgages/remortgaging.aspx

EDIT: Looks like it tracks its Flexx rate and not base rate