A&L clearing their mortgage books?

Moby_Tide

We currently have a 5 year fix (3.99%) with A&L with a year or so to run. Last week I rang to request some additional borrowing, this was granted and will be at 5.99%. The aim was to then consolidate to a single mortgage once our fix expires due to the ERC still outstanding.

At the end of the call though the adviser said that due to the additional borrowing being on a 'standard rate' ( I know it's not their SVR but that was the phrase), 24 hours after I get the additional funds I can ring up Santander and request a remortgage to any of their current deals and the ERC will be waived.

To be honest I was taken aback as this sounds a bit too good to be true, but I will certainly be ringing them to check. Has anyone else had this? As per my title the only reason I could think was it is a simple way of reducing the A&L book to get people on Santander deals and reduce their overheads but just seems odd they would forego what is a few thousand if we did have to pay the ERC.

Thrugelmir

Maintaining A&L's systems for a decreasing number of remaining customers is an expensive overhead. So Santander will be looking to run the mortgage book as quickly as possible. Every point of customer contact gives them an opportunity to do so.

Moby_Tide

Quick update, they were true to their word. Rang up after the funds were released and they offered the full selection of Santander existing customer remortgage rates. Have taken the lifetime tracker at 2.49%+BoE with no fees, ERC of £4.5k waived plus redemption fees waived.

(and I'm now technically free to leave to a fix elsewhere for a small redemption fee). Mustn't grumble!:beer::j

claire80

we are a&l customers - buying a new house . they are transferring our 0.99% lifetime tracker with under payments , overpayments , payment holidays etc over to santander and keeping the rate for an additional 120k on top of what we are porting. we didnt have an erc but they did say if we did it would be waived. we have also had the redemtion charge ( i think thats what it was called ) waived as we are technically staying with the same company.

We are awaiting our written offer now

I guess as said above maintaining servers / systems / staff for a small amount of customers is prob quite costly .

Not complaining though as imo i have had a cracking deal

kirstym100

wow! Lucky you! I am also on A & L's lifetime tracker at base rate +0.99% - they would only port my existing mortgage sum, any additional borowing at not nearly such an attractive rate...

claire80

kirstym100 wrote: »

wow! Lucky you! I am also on A & L's lifetime tracker at base rate +0.99% - they would only port my existing mortgage sum, any additional borowing at not nearly such an attractive rate...

I would have thought it was the same for everyone - sorry :cool: