Santander Rate dropped after application

knonist

I applied to the Santander 2 years variable mortgage at 1.79 % in December 2014,and received a formal offer earlier this month, however, I have not acceptedthe offer yet as I’m waiting for the result from the searches.

I noticed yesterday that the rate of the identical mortgage dropped from1.79 %to 1.59 %.

What is the chance that I can have to lower rate? Do I have to apply again?

Thanks

Senior_Paper_Monitor

Product change £199 fee from memory - Santander make process fairly easy


Same application but will go back to underwriters (new credit and criteria check involved - may request updated bank statement/payslip)

knonist

I think the saving is around £24 per month.
With £238 (£199 + VAT) changing fee, is it a worth while change?

Senior_Paper_Monitor

From Abbey Criteria ....


A product change fee of £199 is payable by the customer if they want to change to another product after their mortgage application has been transmitted and prior to the product expiry/completion deadline.

You need to notify us to change the product and provide us with the customer's valid debit/credit card details.


If the customer has already paid a booking fee upfront for the original product and wants to change to another product, the new product booking fee would be payable as well.




.... I don't believe this VATable (have paid a fair few of these for clients).




Do I need to do the sums for you ????????????

knonist

Thanks, my mortgage advisor said £199 + VAT and claimed it would save me £24 per month.

Saving of £377.

I wonder what is your view on this, how long would it take?

Thanks

kingstreet

It's £199 flat, it isn't VATable, or the VAT is already included.

Abbey/Santander charges £199 for a product change unless you are within two weeks of the product drawdown deadline, then it's free.

knonist

I'm hoping to exchange contract within the next couple of weeks.
It is going to be enough time?

kingstreet

I wouldn't be hanging around.

Ask your solicitor if they have enough time.

It normally takes the lender about three days to re-offer a case and get the actual paper in the post.

knonist

local searches was requested on the 14th Jan. I was told will take a couple of weeks.

To you think it is a wise idea to change the deal now?

kingstreet

I've no idea.

I can only suggest speaking to those getting paid for arranging this for you. We're in no position to know what is happening with your purchase.