Santander remortgage with 123 account

Jamiem4 · 6 January 2017 at 10:34AM

Hi,

I have a £205,000 mortgage with Santander, paying around £780 a month. I also have a Santander 123 account so get £7.80 cashback per month on this payment.

I am due to remortgage in March so starting to browse other providers, but am not sure how valuable the 123 cashback deal is in real terms.

If my interest rate with Santander is around 2.5%, roughly how much impact does the cashback have on this? Struggling to get my head around it!

Thanks,
Jamie

kingstreet · 6 January 2017 at 11:11AM

You need to establish your existing lender's customer retention options first as the future mortgage payment will influence the future 123 cashback.

AnotherJoe · 6 January 2017 at 7:57PM

Maybe I'm missing something but are you overthinking this ? Isn't it worth £7.80 a month ?

kingstreet · 7 January 2017 at 12:34AM

If the Santander monthly payment rises or falls, the cashback does the same, so knowing the Santander customer retention options is the only way to have a point of comparison against other lenders' future deals.