Early Repayment Charges Confusion

monogroover

I'm sure this will sound naive, but anyway here goes!

I'm about to transfer my Santander mortgage to a new product; the lifetime of the last deal (two years I think) is up, and the mortgage is due to change to a more expensive standard variable rate if I don't. However the deal does still have a few weeks to run (into next month).

I just want to make sure that the 3% "early repayment charge" doesn't apply to this situation. Am I, in some sense, paying off the last loan to take up a new one by transferring to a different mortgage product? Or is it the same loan, just a different product and the early repayment charge doesn't apply?

Thanks for any advice.

libf

Call Santander and ask if you can switch in advance of the deal ending or if you have to wait for it to expire and then switch.

Thrugelmir

When the existing product term ends by default you'll move onto the variable rate that's specified. There's no ERC once the product term has ended.

Reserving a new product is possible before the expiry of the existing product term. The switch is seamless.

Ring Santander and see what new options are available to you.

monogroover

Thank-you for the replies. I did call them, and they confirmed that our mortgage will be transferred to the new deal when the existing deal ends, with no early repayment charge.