After Brexit Vote - WHAT SANTANDER OFFERED ME AS EXISTING MORTGAGE CUSTOMER

sitesafe

Thought this might be interesting to other Santander mortgage customers approaching the end of their deal. These rates were offered to me a week ago and are the same rates I was offered today (the day after Brexit voting)....
I have approximately 11 years left on my mortgage. Current deal of my 5 year fix ends in August - it's 4.99 % with 10 % overpayment allowance.

Balance today is £43,309.00 and LTV is 34%

FIXES
2 yr fix - 1.99 - £999 fee - 3% ERC 10% overpayments allowed
2 yr fix - 2.19 - no fee - same
3 yr fix - 2.79 - no fee - same

5 yr fix - 2.79 - no fee - 5% ERC 10% overpayments
7 yr fix - 3.29 - no fee - same

TRACKERS
2 yr track - 1.29 + base (1.79) - £999 fee
Lifetime tracker - 1.99 + base (2.49) - £999 fee

I was going to go for the tracker but due to economic uncertainty I've gone for the 5 yr fix. I compared it to the 7 year fix and the lifetime tracker and there was not a lot in it in the overall cost, and if I overpaid the 10% allowed then the mortgages would be finished after 7 years - I know I would have been allowed to overpay what i wanted on the tracker but I think being on a not very high wage that 10 % would be my limit anyway.

During the telephone conversation I was not asked anything about how much I earn, just what i do for a living, whether i thought i could afford the mortgage and whether i have any savings put by as an emergency fund - but they didn't want to know how much. I was dreading them asking about my outgoings and earnings but they didn't. I realise that the affordability questions are mainly aimed at new customers but still thought I might be asked but I wasn't.

dimbo61

You are an existing customer so they Have already lent you the money.
You are simply changing deals.
The 5year fix is a good deal and if you can afford to overpay by 10% each year you could be mortgage free in 5 years.

Thrugelmir

dimbo61 wrote: »

You are an existing customer so they Have already lent you the money.
You are simply changing deals.

Lenders can choose to impose affordability checks if they wish. Currently they have the option not to on product switches.

Thrugelmir

Brexit as an event will have a minimal impact on mortgage rates. Unless the BOE directly intervenes. Every day there's events which impact global financial markets. Money lent is priced on a commercial basis.

sitesafe

Thrugelmir wrote: »

Brexit as an event will have a minimal impact on mortgage rates. Unless the BOE directly intervenes. Every day there's events which impact global financial markets. Money lent is priced on a commercial basis.

yes I realise that even before now nothing has been for sure and people have been uncertain for years whether rates will go up and they haven't - as it's just me and I'm a worrier it felt the right thing to do. Still I have a 14 day cooling off period but then I would have to hope that the deals that were offered were still available...

Thrugelmir

sitesafe wrote: »

yes I realise that even before now nothing has been for sure and people have been uncertain for years whether rates will go up and they haven't - as it's just me and I'm a worrier it felt the right thing to do. Still I have a 14 day cooling off period but then I would have to hope that the deals that were offered were still available...

As you are a worrier the best suggestion I can make is that you overpay your mortgage. Reducing the debt owed will reduce the amount of interest you'll pay. The lower the amount you owe the less impact any future change in rates will have. Control what you able not worry over something you can't.

sitesafe

dimbo61 wrote: »

You are an existing customer so they Have already lent you the money.
You are simply changing deals.
The 5year fix is a good deal and if you can afford to overpay by 10% each year you could be mortgage free in 5 years.

Thanks dimbo61 - I thought I would be left over with around £10k after year 5. It's 10% overpayment allowed on annual balance. If I can do it in 5 years with the fix without having to pay any ERC that's even better but how this would work?