Mortgage Query - Santander?

Aki123

Hi - not sure if this is the right place to post, so apologies.

I'm helping my cousin to buy a house by putting up the deposit, and will help with the mortgage payments by over-paying, so the mortgage will be in both of our names although I won't live there.

We want a mortgage that we can over-pay on, rate re-calculated daily, preferably with zero or very low set-up fees.

We've seen a 'whole of market' broker who has told us the best deal is Santander - no set up fees, can overpay, rate is 3.69% fixed for 2 years, for £110k over 20 years.

The estate agent we're buying the house through has told us Santander won't accept us because I won't be living at the property, and he's come up with similar deals with Nat West, Nationwide & Halifax (all with set up fees), who he says will.

The first broker did ask us if we minded 'bending the rules' a bit, so my guess is that he was going to class us as a 'couple' moving in together. (I have no other mortgage or loans to tie me to my current property.)

Does anyone know why one is pro-Santander and the other so against? Am I missing something really obvious? I know that the banks pay them for the business, but surely that's not THE major factor in who they recommend (or am I being naive)?

Any insight would be incredibly helpful, thanks!

kingstreet

The difference between commission payments by High Street lenders is minimal.

Santander

Standard 0.33%
Flexi 0.4%
Long term fix (5Y) 0.5%
Ten year fix 0.7%

NatWest

Standard 0.32%

Nationwide

All 0.35%

Halifax

Standard 0.31%

All the products mentioned allow you to overpay by 10% per annum, off the top of my head.

chanz4

Aki123 wrote: »

Hi - not sure if this is the right place to post, so apologies.

I'm helping my cousin to buy a house by putting up the deposit, and will help with the mortgage payments by over-paying, so the mortgage will be in both of our names although I won't live there.

We want a mortgage that we can over-pay on, rate re-calculated daily, preferably with zero or very low set-up fees.

We've seen a 'whole of market' broker who has told us the best deal is Santander - no set up fees, can overpay, rate is 3.69% fixed for 2 years, for £110k over 20 years.

The estate agent we're buying the house through has told us Santander won't accept us because I won't be living at the property, and he's come up with similar deals with Nat West, Nationwide & Halifax (all with set up fees), who he says will.

The first broker did ask us if we minded 'bending the rules' a bit, so my guess is that he was going to class us as a 'couple' moving in together. (I have no other mortgage or loans to tie me to my current property.)

Does anyone know why one is pro-Santander and the other so against? Am I missing something really obvious? I know that the banks pay them for the business, but surely that's not THE major factor in who they recommend (or am I being naive)?

Any insight would be incredibly helpful, thanks!

Its so the agent can get the commission and not your mb, I found that when I went to view a house

Aki123

kingstreet wrote: »

The difference between commission payments by High Street lenders is minimal.

Santander

Standard 0.33%
Flexi 0.4%
Long term fix (5Y) 0.5%
Ten year fix 0.7%

NatWest

Standard 0.32%

Nationwide

All 0.35%

Halifax

Standard 0.31%

All the products mentioned allow you to overpay by 10% per annum, off the top of my head.

Thanks - so you think the one from the estate agents is just trying to discredit the other one to get our business and there's no problem with us going with Santander if I don't live there?

Aki123

chanz4 wrote: »

Its so the agent can get the commission and not your mb, I found that when I went to view a house

Oops - I meant to put my query on this one .....

Thanks - so you think the one from the estate agents is just trying to discredit the other one to get our business and there's no problem with us going with Santander if I don't live there?

chanz4

I cant answer about that part just my experience where one tried todo the same.