Santander not allowing us to fix rate

Patty101

Hi all wondered if anyone else has come across this problem. Had a mortgage with Santander for past 10 years. 3 years ago we went onto a dmp due to credit card debt. Our 5 year fixed rate is due to expire in August and with rates predicted to rise I rang them last week to see what they could offer. I was told that they had no other mortgage product to offer me other than the standard variable rate due to my credit rating.

I was shocked by their response. We have never missed a mortgage payment despite being on a dmp. It seems they are happy to allow our mortgage payment to go up and the possibility of us then not being able to afford it than allow me to fix at a rate I know we can afford?

We can't remortgage with another provider due to the dmp. Santander have us over barrel 😡

Thrugelmir

Patty101 wrote: »

I was shocked by their response. We have never missed a mortgage payment despite being on a dmp. It seems they are happy to allow our mortgage payment to go up and the possibility of us then not being able to afford it than allow me to fix at a rate I know we can afford?

Your current financial standing poses a risk to Santander. The interest rate charged reflects the risk. SVR is the level that rates are heading back towards. So it's a purely commercial decision nothing personal.

SVR is lower than the average mortgage rate in the 10 years pre 2008. So not a high rate either.

rasb0

Patty101, ChumpusRex, Thanks! I was about to make the same inquiry, my situation is a mirror of yours Patty101, my fixed term also finishing in August, my DMP has been running 4 years (£28,000 repaid!). My lender said NO, that after 21 years, but I understand it is all about risk and not personal. We got ourselves in this mess. Fortunately, in the short term the SVR is less than the current fixed term rate, so respite until the next rate change and then a budget review.