Santander Mortgage Deal

kev2009

Hi,

My existing 5 year fixed mortgage deal is coming to a end and I've just received a email advising to login to online banking to see my new mortgage deal offers.
However, i see on Santander's website under mortgage and "Remortgaging to us" so presumable this is for people moving from another provider to them, which i'm not doing as i'm with them now but on a 5 year fixed rate, they are offering a better interest rate and a cheaper product fee.  Would it be worth me dropping them a message and asking if I could have that deal do you think?  The rate is also the better rate I could get if i went to a mortgage broker but seems daft to pay a mortgage broker when i'm staying with the same provider, just to get the better rate.
Thanks
Kev

ec9wrr

It would be sensible to speak to a broker rather than just sticking to your current provider. Or at least research the market a little. You will most likely find better rates elsewhere for your remortgage. Remortgaging is a very easy process and there are several free brokers you could choose to speak to. 

tigsly

Did you log in and look at what they would offer you? 
What LTV% do you have?

I

kev2009

Thanks all, I've had a look at the offers elsewhere are all within the same interest rate and monthly repayment hence I figured at this time, it would be simpler to stick with current provider as rather than getting valuations etc etc all over again especially as I believe the mortgages have got a bit less easier to get than previously so i'm happy to remain with my current provider, just seems odd they do a cheaper/better deal but not offering that to me.
Yes, i've logged in and see the offers, i'm below the 60% LTV.  It just almost seems kinda pointless to go to a broker, have then literally spend probably 10mins and its done as there will be no legal fee, valuation etc as i'm with them already.
If there are free brokers available, I will have a look but surely there must be something in it for them as they can't be working for free? Unless bank pays them a small %?
Kev

haras_n0sirrah

As a broker we do not charge the client for product transfers, a lot of brokers don't because as you say the processing work is minimal. We compare existing lender against the market and then give advice as to the best option. We are then liable for that advice. The bank pay the broker a small amount to process the product transfer as it takes the advice liability away from them. Even on a product transfer it can be worth getting advice - a poster has just been posting that they have tied themselves into a 5 year fix rate 6 months ago doing a product transfer themselves yet they had already reserved a new home and have just discovered they cannot move the mortgage due to lender criteria and have an erc of multiple thousands. It is worth getting advice even if it staying with the same lender to make sure the right product is being chosen.

jamielutz1987

@kev2009 Even for a product transfer, I always go through a broker that doesn't charge a fee.

I get free advice and someone taking responsibility for the advice. And with some lenders, the product transfer rates available through brokers beats what the lender offers direct (I think I had that with NatWest once).

The only negative is that it's a bit more effort than an online product transfer as (unless things have changed) the broker still has to do a fact-find.

haras_n0sirrah

We do have to do a fact find yes as that is where the advice and client protection comes in. A broker can't advise without having the information to do it. So it may take 10 mins to answer some questions over the phone but then you know someone is taking your circumstances into account as they know your situation.

kev2009

Thanks all, do you think its worth asking the Bank for that better deal or will they simply say no and i'd have to go via a broker to get it?
Thanks
Kev

haras_n0sirrah

If staying with the same lender it will be their existing client rates. You won't get a new business rate even if you ask. They are trying to attract new customers away from other banks which is why they offer them a better rate. A broker wont be able to get you the new client rate either. Mortgage lending isnt the same as asking for a cheaper deal from sky - they cannot change the deal it would be impossible for them to do so. Some lenders have better rates via brokers than direct. Some dont but the main value add of a broker is advice.

kev2009

Thanks all, what does the Fact finding involve, do i need to supply things like proof of ID, bank statements/pay slips etc?
I did use a broker the first time when i got my mortgage and paid a fee for this but I've just had a look on there website and no real information is provided about fees so unsure if they would charge a fee for product transfer.  My general view is i'm happy to remain with who i'm with as I've had no issues at all and interest rates are pretty low already so the difference in monthly payments is only 2 or 3 quid from the cheapest I've seen to the one I've chosen so its not worth the time.  Especially as I am planning to make over payments, whereas i presume the online calculators assume you pay just the fixed amount for the fixed period so effectively by myself making over payments each year, i'll probably be better off in the long run.
Thanks
Kev

haras_n0sirrah

A fact find is name, address, dob, income, credit commitments etc etc.
You may need to email Id, bank statements and payslips to the advisor as for a first time transaction they would normally need these on file but for example in our case we wouldn't for any subsequent product transfers.
As I say it is down to whether you want the advice of a professional or whether you want to DIY and take your own liability. The advisor may bring up an option you hadn't considered. Where it is free then the only cost is the time to go through the fact find (maybe 20 mins to take information over the phone and discuss your circumstances) and email your documents over.