Is there anything we can do?

gabriella

We have had a mortgage with Santander for 8 years at a rate of 1.3 or 4 (not quite sure), my husband is a self-employed Mac Computer engineer and works from home, we have occasionally had trouble paying the mortgage but have always paid eventually although maybe not 'on time'. About 15 months ago after coming to the end of our existing agreement they increased our rate to 4.9, we are really struggling to pay the monthly payment of £1200 from £600 that we were paying. Our house is up for sale and until this morning had a buyer. On reading up on the latest housing market I notice that the mortgage rate is going down, but ours isn't, we are not on a fixed rate. I don't understand how Santander can keep us at this rate when they are advertising rates at 2. something. We have tried talking to them, they don't care and won't help at all. We cant remortgage as the business accounts are so bad that I can't imagine another bank taking us on. Just at by wits end and don't know what to do, don't really want to live anymore!!

ACG

Your on the standard variable rate which will probably be x% above the bank of england rate? (Double check that).

You agreed to it.

It does not matter what happens elsewhere, its all about your contract.

You could tie in to a new deal but if the house is for sale then there is no point as you will have ERCs. There is very little you can do if you intend to sell up. If you plan to stay it might be worth asking what retention deals they have available but only do that if you plan to stay.

Blu4

Aw you are in a difficult situation aren't you?

When people say rates are coming down they mean the mortgage products or deals, not the standard variable rate which is what you are automatically on after your product term ends. So you entered into your contract with them for x amount of years at a certain rate. When those years end you automatically go onto the standard variable rate which it sounds like you're on now.

If you want to go for a lower rate you would need to review it with them. But beware, you will be tied in for a specific length of time and if you sell/want to pay it off within the term you are likely to have a penalty. The only thing is if they offer you a product that is portable to another property and your mortgage is low enough, you may still be able to lower your payments immediately.
As you say, it's doubtful you'd credit score with another provider so your best bet is to try Santander again unfortunately.

Good luck

amnblog

Careful here Gabriella.


If your credit file is showing recent missed and late mortgage payments you most likely wont get new mortgage lending if you sell - nor will Santander offer you new lending on a new property.


Unless you are going into rented accommodation you need to think very carefully before you sell.