Santander fixed mortgage termination fees

Paddy_Ray

My son/daughter-in-law arranged a mortgage through Santander a few years ago. For some reason they advised he take out two mortgages. He now wishes to re-mortgage and with the extra money modernise the house.
Santander have informed him he will need to pay £3000 to close each of the fixed mortgages-total £6000 even though he has no wish to move away from Santander.
Is this money grabbing what?
Is there anyway out for him?

skimper

All fixed mortgages come with an early repayment charge.

How long does he have left on the fixed term? could he wait until that is up to re-mortgage?

Thrugelmir

Paddy_Ray wrote: »

Santander have informed him he will need to pay £3000 to close each of the fixed mortgages-total £6000 even though he has no wish to move away from Santander.

What question was actually asked? Should be no need to close the existing mortgage accounts. Just borrow the additional amount required.

dunstonh

Is this money grabbing what?

No. Its quite normal and understandable as to why it exists.

If he didnt want a tie in, then why did he agree to it?

Is there anyway out for him?

Dont break the contract and borrow the additional amount as a further advance.

. For some reason they advised he take out two mortgages.

That usually means borrowing at different points (original amount and a further advance) or it is part interest only and part capital & repayment. The fee is not increased either way as its based on amount. Not the number of sub-accounts.