Santander remortgage - cooling off period

Tricky69eng

Hi & hello everybody in the MSE forum.
Before Xmas I was looking into changing my Santander mortgage to another Santander mortgage as my fixed rate was about to expire in Jan/Feb 2014. I did take a bite of the apple and change to a lower rate with Santander and the new rate starts on Feb 3rd 2014.

However since then I have decided to go with with a broker and have got a better deal elsewhere with 'Mortgage Works' however I phoned Santander up to tell them that I wont be needing this new mortgage anymore, that hasn't started yet advising them that I just want to go on their standard variable rate until my paperwork gets completed on the new mortgage for them to say that your 14 day grace period is up and your'll now be charged early repayment fees should you change mortgage providers.

I think it is preposterous and am down right outraged.

Has anyone experienced this sort of thing before?
I tried to explain that its only paperwork, the rate and mortgage hasn't started yet. But they were having none of it.

I am deeply annoyed and will now be changing my current account and credit card away from Santander.

Thanks,

Tricky.

cb4fwh

Hiya,

Wish I could give you good news, but unfortunately you've transferred to a new mortgage product & your 14 day grace period is up, although your new product doesn't start until the 3rd Feb.

Your only way out is by paying an early repayment fee...

kingstreet

So, is this a BTL mortgage with Santander, changing to another BTL mortgage with TMW, or a residential mortgage with Santander, changing to a BTL with TMW?

Does the Santander paperwork make clear you had 14 days in which to change your mind?

Tricky69eng

Its a residential mortgage with Santander changing to a BTL mortgage with the mortgage works.

I'm renting my house out now so I wanted some equity in it, these charges are disgusting. I don't want the Santander Mortgage, its not fit for purpose.

Santander wont budge, do you think the financial ombudsmen would do anything?

kingstreet

Tricky69eng wrote: »

I'm renting my house out now so I wanted some equity in it, these charges are disgusting.

Please explain the items in bold.

Are you taking further borrowing? What charges?

Please confirm if you were notified in writing you had 14 days in which to change your mind. If so, has the 14 day period passed?

Tricky69eng

Hi KS,

Unfortunately I have read yes that it does say 14 days you have to cancel.

However my simple fact is that I have a property that I am renting out, albeit with a residential mortgage but I am now changing it to a BTL one with TMW. Is it such a small thing to ask because of Xmas and new year that I've missed the grace of a policy for a product that hasn't started yet, that they could waiver early settlement charges. Its a residential mortgage after all. Santander don't do BTL at this moment in time.

My current mortgage is circa £86,000 I wanted to borrow and Addtional £12k making £98k in total. My property is estimated at £133k-£135k in value.

kingstreet

You appear to have no contractual right to cancel the planned product, so all you can do is make a noise and hope they'll cave-in.

FOS will be of no help if the lender has adhered to its written procedure.

Lenders do not usually give additional borrowing when they have granted consent to let, so I'm surprised. When does your consent expire?

Is the new rate to apply to the additional borrowing, the original borrowing, or both?

BillJones

Tricky69eng wrote: »

Hi KS,

Unfortunately I have read yes that it does say 14 days you have to cancel.

However my simple fact is that I have a property that I am renting out, albeit with a residential mortgage but I am now changing it to a BTL one with TMW. Is it such a small thing to ask because of Xmas and new year that I've missed the grace of a policy for a product that hasn't started yet, that they could waiver early settlement charges.

If you'd fallen ill, had to sell up, lost your job etc, then they may well have a moral obligation to help you out, but beccauuse you've decided you prefer a deal somewhere else?

You are having a laugh, surely?

Tricky69eng

Lenders do not usually give additional borrowing when they have granted consent to let, so I'm surprised. When does your consent expire?

Is the new rate to apply to the additional borrowing, the original borrowing, or both?[/QUOTE]

In 2011 I had a 2 year fixed rate to expire now (moving onto their SVR with no fees to transfer or end), I have now foolishly entered another 3 year fixed rate with Santander which I am on about, which is residential but I now want a BTL with the additional equity.

The grace was up on Xmas eve. 14 days previous was 9/10 December. Its not light years away being on the 9th January so I cannot see Santander's problem.

Dave_Ham

Your situation seems worse than I first thought, are you saying that you just transferred onto another residential mortgage and are now already or due to rent the property out?

jacques_chirac

Tricky69eng wrote: »

Is it such a small thing to ask because of Xmas and new year that I've missed the grace of a policy for a product that hasn't started yet, that they could waiver early settlement charges.

Tricky69eng wrote: »

The grace was up on Xmas eve. 14 days previous was 9/10 December. Its not light years away being on the 9th January so I cannot see Santander's problem.

Your cooling off period was not affected by Christmas and new year?

I appreciate your frustration that you may have got a better deal elsewhere, but fail to see why you are 'outraged' at Santander - they have done nothing wrong.