Santander Mortgage Rates

jamesd

adamcarvell wrote: »

not increasing term im looking at reducing it from 16 to 14 years it was 30 when we moved in 7 years ago like it gone by the time im 60ish.

Better to increase the term. The term doesn't control how much you can pay, it controls how much you must pay even if sick and unemployed. The lower you get that required payment the safer you are because your emergency fund will last longer.

Then you just make monthly payments that match the time you want it gone by, you can get those from any mortgage calculator.

This doesn't cost you any more interest, it just makes life less risky for you.

cbrpaul

adamcarvell wrote: »

well im on fixed rate expires in april too mine was 4.79% they offered me 5 year fixed for 3.29% no fees and have been accepted for it. got paperwork at home but not signed as of yet. call them up see what you get offered

Many thx for the reply,

Does that offer include unlimited over payments at anytime also ? and interest re-calculated immediately upon them receiving an over payment ?

adamcarvell

cbrpaul wrote: »

Many thx for the reply,

Does that offer include unlimited over payments at anytime also ? and interest re-calculated immediately upon them receiving an over payment ?

not sure and my mistake it was 3.39% on saturday when i rang up. last thurs i rang up it was 3.29% my paperwork is for 3.39% ad dont think its unlimited overpayments no.

cbrpaul

adamcarvell wrote: »

not sure and my mistake it was 3.39% on saturday when i rang up. last thurs i rang up it was 3.29% my paperwork is for 3.39% ad dont think its unlimited overpayments no.

ok thx ,

the rate i found has now also gone from 3.29% upto 3.39%

Luckily i booked the 3.29% rate :D

adamcarvell

jamesd wrote: »

Better to increase the term. The term doesn't control how much you can pay, it controls how much you must pay even if sick and unemployed. The lower you get that required payment the safer you are because your emergency fund will last longer.

Then you just make monthly payments that match the time you want it gone by, you can get those from any mortgage calculator.

This doesn't cost you any more interest, it just makes life less risky for you.

i understand where you are coming from but having just moved and increasing the term to 30 years then 12 months down the line financial crisis happens i nearly had a breakdown worrying over money now seven years on regarding terms we would be back to where we were in terms before we moved phycoloogy it make meal fel in a better place.

gjchester

cbrpaul wrote: »

Many thx for the reply,

Does that offer include unlimited over payments at anytime also ? and interest re-calculated immediately upon them receiving an over payment ?

When I asked about it a few weeks ago the answer was no, there was a 10% overpayment limit while the fix is in place, and no more than £499 in any one payment month except in January of the year when you can pay anything in overpayment subject to that 10% yearly limit.

So lets say £100K mortgage, in year 1 you can overpay £10k. To avoid fees you'd be limited to overpay £499 a month for 11 months, which means £5489 a year, and then in the January you can may an overpayment of £4511 (or if you prefer the regular monthly payment of £499 and then a £4012 Extra payment). Obviously thats in addition to your agreed montly payment.

Re-calculation was only triggered by a £500 plus repayment, which would effectively mean just January in my example, but interest was calculated daily. My understanding of that is you'd effectively be overpaying more as the monthly payment was only calculated one a year, unless you paid over £500 in one month and got charged a fee for the excess payment.

Didn't look into it too closely as we went with the tracker as it allowed unlimited overpayments at any time.

Hope that makes sense...

getmore4less

given they are giving new customers base+2% lifetime trackers and at least one existing customer has been given a base+0.99% I would be checking the best tracker deal they have.

I wonder if they are targeting lifetime deals to reduce the churn rates its the headline on the mortgage page of the website.

cbrpaul

gjchester wrote: »

When I asked about it a few weeks ago the answer was no, there was a 10% overpayment limit while the fix is in place, and no more than £499 in any one payment month except in January of the year when you can pay anything in overpayment subject to that 10% yearly limit.

So lets say £100K mortgage, in year 1 you can overpay £10k. To avoid fees you'd be limited to overpay £499 a month for 11 months, which means £5489 a year, and then in the January you can may an overpayment of £4511 (or if you prefer the regular monthly payment of £499 and then a £4012 Extra payment). Obviously thats in addition to your agreed montly payment.

Re-calculation was only triggered by a £500 plus repayment, which would effectively mean just January in my example, but interest was calculated daily. My understanding of that is you'd effectively be overpaying more as the monthly payment was only calculated one a year, unless you paid over £500 in one month and got charged a fee for the excess payment.

Didn't look into it too closely as we went with the tracker as it allowed unlimited overpayments at any time.

Hope that makes sense...

Makes perfect sense , thx

Infact thats the exact same conditions i currently have with my old A&L mortgage with Santander

My new provider will calculate interest daily including any over payments made at any time

i do have a ERC ( early repayment charge) but I am hoping to have paid the mortgage off by the end of term of 5 years.

Which begs the question , if i did pay off all the mortgage but leaving only £1 owing I gather I would just pay the interest on that £1 remaining for the term remainder , thus avoiding the ERC ?

getmore4less

adamcarvell wrote: »

i understand where you are coming from but having just moved and increasing the term to 30 years then 12 months down the line financial crisis happens i nearly had a breakdown worrying over money now seven years on regarding terms we would be back to where we were in terms before we moved phycoloogy it make meal fel in a better place.

Having a longer term but paying as if it was a shorter term helps avoid financial crisis.

Having the shorter term just makes the crisis more likely as it is triggered sooner when there is an income issue.

gjchester

cbrpaul wrote: »

Which begs the question , if i did pay off all the mortgage but leaving only £1 owing I gather I would just pay the interest on that £1 remaining for the term remainder , thus avoiding the ERC ?

Probably.

It used to be you'd leave £1 outstanding so the deeds remained in the bank / BS safes, and nothing was charged on it, but now they are held electronically at the Land Registry so its irreverent.

If that was me I'd look into the fee, and the time left, and probably I'll tweak payments to make it pay off after the first month after the ERC finished. That said it may be you can time that payment to reduce the amount you pay as the ERC, it's normally calculated as a % of the outstanding balance, but in some cases may be a set number of months payment.

Fees charged may negate any benefit you'd get paying off faster, its something you'd have to work through.