Transferring my mortgage. Good deal or look somewhere else?

carlsorff

Hi!

I have currently a 3 part mortgage (20years left) with Alliance & Leicester with these conditions:

Part 1: Base Rate Tracker 1.49% (0.5%BoE rate + 0.99%) 80K debt
Part 2: Variable Rate 4.23% 30K debt
Part 3: Variable Rate 5.99% 40K debt

After phoning to Santander Bank, they are offering me to transfer the 3 part mortgage into 1 with a Lifetime tracker BBR plus 0.99% for the whole amount.

Is it a really a good deal or I'm missing something?

Many thanks!

AnotherJoe

I'd say it's a good deal if you feel interest rates will stay low for a considerable time (which I do but not everyone agrees). Is there an ERC? An arrangement fee?

carlsorff

Hello! No ERC. Only Mortgage arr. fee of £225 deferred until de end of the loan. I want to believe interest rates will stay down for quite a while and if going up will not be getting levels like in 2007.

Spangled

Wow, a lifetime tracker at Base Rate + 0.99%. From my (non-expert) research that's a market-leading rate for lifetime trackers. Best comparator I can see is HSBC's lifetime tracker at Base Rate + 1.29%.

I can't see that Base Rate + 0.99% deal listed on Santander's website. The only lifetime tracker they have listed on their website is Base Rate + 1.89%.

Do they offer different deals if you phone up then?

getmore4less

base + 0.99% lifetime
low fees?
unlimited overpayments?

Grab it before they change their minds.

Jhoney_2

Whats the LTV?

Cannot locate anything on the website, but if it's available I would take it.

Thrugelmir

Is your mortgage currently a repayment one?

carlsorff

Hi all! Thanks for your answers.

Spangled wrote: »

Do they offer different deals if you phone up then?

Yep, apparently they have more deals on phone than online!

Jhoney wrote: »

Whats the LTV?

Cannot locate anything on the website, but if it's available I would take it.

Don't know. Asked on phone for deals and they offered straight away this deal. Doing myself LTV calculations based on the value of my house it gives me 68%.

Thrugelmir wrote: »

Is your mortgage currently a repayment one?

Yes. It's currently a repayment one with Alliance & Leicester and it's too on the new deal offered.

Spangled

carlsorff wrote: »

Yep, apparently they have more deals on phone than online!

Wowser. I'm in the market myself for a lifetime tracker later this year so I'll def be contacting Santander if that's the case. That's quite a difference between what they show on the website (BR + 1.89%) to what they'll offer over the phone (BR + 0.99%).

Thrugelmir

carlsorff wrote: »

Yep, apparently they have more deals on phone than online!

The old Alliance and Leicester mortgage book has been closed for some years and is in run down. As a consequence it's in Santander interest to move you onto their own mortgage book. With such an attractive lifetime rate you obviously would choose to sit tight and possibly overpay the higher interest sub accounts until the mortgage runs it's term.

carlsorff

Are banks becoming companies like sky and virgin in which needs to haggle too? In my experièncie it looks like it's happening! Make deals through the phone only,please. I will post my deal signed first thing tomorrow morning.