Santander - are they a 'good' mortgage company to be stuck with for life?

parkliving

I am taking on a very large mortgage, which is fine because I have the income at the moment.
However, I plan to adopt in the next couple of years, on my own, so have opted for a 5 year, very long term deal.
My brokers (L&C) advised me to go with Natwest, because once I adopt, my income will drop like a stone (my current job involves weekly travel) as I will switch to work school/nursery friendly hours locally - adoptive children tend to have different needs to birth children - probably earning NMW.
I will be a mortgage prisoner then, and be unable to switch lenders.
L&C advised me that if I go with a large lender with more security and my debt isn't sold on to another lender, then I should be able to contact my existing lender when the 5 year fix is up, and secure another discounted fix without them digging into my (then) current income - which would lead to a refusal.

I have since found a slightly better deal with Santander (would save me aprox £2,000 over the 5 years in interest/fees) - but did L&C not mention Santander because they have a bad reputation of treating their customers harshly?

Help, I don't want to be trapped, but equally £2,000 is a lot of money to waste if I don't need to!
Hopefully you can follow my rambling post!

[Deleted User]

Natwest is a horrible recommendation if there is a chance you will be a mortgage prisoner. Their rates are worse for existing customers then new.
Santander don't dual price (apart from the odd exclusive here and there) so you should get a good deal as an existing customer with them.

As long as you stay away from natwest, Halifax, Lloyds then the rest of the high street should be better if you get stuck.

Also, find a different broker as natwest is really bad advice.

Thrugelmir

Why not lock into a 10 year fix. 5 years in the scheme of an entire mortgage term isn't that long.

ec9wrr

The reason banks look into your income and expenditure is to convince themselves you’ll be able to repay the debt. If you think that in 5 years time your situation will have changed so dramatically that the bank wouldn’t lend to you or wouldn’t lend as much, then maybe you’re borrowing too much?

[Deleted User]

I'm surprised L&C have given you advise on a long term (which I assume far exceeds 5 years), knowing you have intentions to adopt shortly!

It depends on the wording sometimes - but with the discussions you say they've had with you (e.g. talking about who you might be tied/trapped with) these sound more than just "maybes"!

I'm shocked they aren't submitting your application on the lower income.

Although it gets you the house you want using current income, as above is there any other alternative scheme? e.g. maybe Shared Ownership or similar.

What if your chosen lender (whoever it is) became inactive or stopped offering decent retention products - and just shoved you on SVR for life. Could you afford SVR on your lower income?

ACG

I am surprised L&C are able to proceed.
You have to answer a question as to whether or not your income will decrease down the line, answering yes would likely result in your application being declined. They are putting themselves in the open there for a complaint.

I agree with JMA though, Natwest is a poor recommendation. Their retention deals are not very good.

However it is an impossible question to answer. What lenders do today, does not mean they will do the same thing tomorrow. Chances are in 5 years time there will be more options for mortgage prisoners but who knows what will be available and what Santanders stance will be?

Verix

ACG wrote: »

However it is an impossible question to answer. What lenders do today, does not mean they will do the same thing tomorrow. Chances are in 5 years time there will be more options for mortgage prisoners but who knows what will be available and what Santanders stance will be?

This. Currently Natwest's retention products aren't competitive and Santander's tend to be better. However none of us can say that will still be the case in 5 years time and making plans as to which lender it would be better to be a mortgage prisoner with is far from ideal.

parkliving

Thanks for the replies.
I am currently with Santander, the re-mortgage is to release capital to extend my house as its cheaper than moving (and I love the area I live in).
Re poster believing I shouldn't get the large mortgage now, but should base it on a future dream I have....The plans to adopt are not concrete. Applying for adoption is a tough process, and I although I believe I am a good candidate, I might not be approved.
I assume when most (to use an example) couples first buy a house, they do not mention that in a couple of years they intend to start a family, so please base the mortgage on a sole income / maternity pay please?
I've done my sums, it's affordable.
I just wanted to know about the reputation of Santander verses Natwest, thank you for the replies.