Thinking of changing bank, will I be penalised for loyalty mortgage

tessflo

I currently have a 3 year fixed Santander mortgage due to end summer 2017. It is a loyalty mortgage because my current account is with them. I am looking to switch back to my old bank Nationwide and have my main current account with them.
Question is if I leave Santander and no longer have a current account with them, will they then change my mortgage/penalise me as I am getting a reduced rate with them currently because I have a Santander current account or will I be able to close my account with them, without it affecting my current mortgage rate until my 3 year deal ends?

Rollinghills

What exactly is the loyalty condition? Just that you have a current account with santander or you have to pay your salary there etc?
Because nothing stops you having a main current account with Nationwide and leaving the santander current account open as far as I'm concerned. Or have I misunderstood your question?

tessflo

I guess there is no loyalty as such, its just that because I had a santander 123 current account that I got a cheaper mortgage rate, so my question was really if I left santander and no longer paid in the required amount every month and the minimum 2 direct debits per month, would they then change my mortgage rate to a higher rate midway through my fixed rate deal because I was no longer their customer so they would just transfer me onto their mortgage rates that most people get if they are do not have a santander current account. thanks.

Rollinghills

Ok, so you have to have your main account with them, that's different. I think they would be in their right to change your rate but whether they would notice it is something else. If you dig out your documents it probably says something about this in small print.

amnblog

Is there no loyalty left in this world?

Jhoney_2

There's no loyalty discount rate anymore then - just a reduced product fee and free valuation + cashback. The non loyalty rate is exactly the same but product is £500 more.