Santander remortgage

theguvnor

Hi, my fixed rate ends in April. I've phoned Santander and I'm elligible to "lock in" a new fixed rate now for when my current one ends. I'm looking for another 2yr fix.

They are quoting me at 70% ltv

1.74% with a fee of £995 monthly payment of £583
1.99 with no fee monthly payment of £595

When I look on the best buys bit of this site there are better deals with Santander. Is it because I'm already a customer with them?

muhandis

That is odd. You'd expect lenders to offer better rates for product switches than they do for new customers (eg Nationwide knocks off .xx% off for existing mortgage customers).

Even Santander on its website says "Is your current deal coming to an end or are you just thinking about changing your existing deal? With exclusive rates for existing customers, you can either call us for advice or compare the deals available to you and submit your transfer request online."

When you input details into the best buy calculator, are you using the original value of the house at the start of the mortgage or the current updated value?

theguvnor wrote: »

Hi, my fixed rate ends in April. I've phoned Santander and I'm elligible to "lock in" a new fixed rate now for when my current one ends. I'm looking for another 2yr fix.

They are quoting me at 70% ltv

1.74% with a fee of £995 monthly payment of £583
1.99 with no fee monthly payment of £595

When I look on the best buys bit of this site there are better deals with Santander. Is it because I'm already a customer with them?

kingstreet

You are not remortgaging, so you should not look at remortgage products as these are for borrowers new to that particular lender.

You are being offered a customer retention product by your existing lender. These can be better or worse than what is being offered to new borrowers, but in Santander's case, they are normally worse.

FWIW there is no change to the mortgage deed when you take a customer retention product, so that's why it isn't a remortgage.

Asghar

theguvnor wrote: »

Hi, my fixed rate ends in April. I've phoned Santander and I'm elligible to "lock in" a new fixed rate now for when my current one ends. I'm looking for another 2yr fix.

They are quoting me at 70% ltv

1.74% with a fee of £995 monthly payment of £583
1.99 with no fee monthly payment of £595

The one with no fee is only £12 a month more x 24 months is £288 extra over the 2yr fix. Why offer a slightly smaller rate that is going to cost £995?

theguvnor

kingstreet wrote: »

You are not remortgaging, so you should not look at remortgage products as these are for borrowers new to that particular lender.

You are being offered a customer retention product by your existing lender. These can be better or worse than what is being offered to new borrowers, but in Santander's case, they are normally worse.

FWIW there is no change to the mortgage deed when you take a customer retention product, so that's why it isn't a remortgage.

Ah I see. Makes sense. Going to stay with Santander I think. Will probably go for the 1.99% deal.

Not sure if to wait until the new year see if they drop anymore. Although I can't see it.

Richey_

Make sure that is the price you will pay in the product fee. I last renewed around 18 months ago and for current customers they were offering half price product fees if you stayed with them and renewed early. My product fee with Santander was £499 rather than the advertised £999.

Also your figures seem out. I checked here and when I remortgaged my new rate and product fee matched this website...
https://www.santanderforintermediaries.co.uk/products-and-criteria/latest-mortgage-rates/

theguvnor

Richey_ wrote: »

Make sure that is the price you will pay in the product fee. I last renewed around 18 months ago and for current customers they were offering half price product fees if you stayed with them and renewed early. My product fee with Santander was £499 rather than the advertised £999.

Also your figures seem out. I checked here and when I remortgaged my new rate and product fee matched this website...
https://www.santanderforintermediaries.co.uk/products-and-criteria/latest-mortgage-rates/

Hi, on that website it shows a 1.74% product with no fee. Confused now!

kingstreet

theguvnor wrote: »

Hi, on that website it shows a 1.74% product with no fee. Confused now!

On that drop-down, none of the customer groups is "existing borrower not moving home," or customer retention product as discussed above, so they don't apply to you.

Richey_

It says remortgage as an option. When I remortgaged with them the rate on this Site under the remortgage heading was exactly what they offered me

Thrugelmir

Richey_ wrote: »

It says remortgage as an option. When I remortgaged with them the rate on this Site under the remortgage heading was exactly what they offered me

See Kingstreet post #3 above.