Two Mortgage Products (due to porting) - Santander.

calmity72

@getmoreforless.
So I took the plunge and called santander. What they are offering is to remortgage only part 1 of my mortgage and leave the second part alone until Nov (or 4 months before when the early window to transfer open).
That effectively means remortgaging £120k at 1.54% as opposed to currently 1.79%, over 23 years 3 months
Then £63K at 2.99% until November, over 20 years and 8 months.
Seems to me that if I make any changes now, I just create more problems for the future because the ERC windows get further away rather than closer. At some point I just want a single loan and to negotiate a move to an alternative lender.

So current position. Part 1 of the deal ends, July 2021 (Early transition window opened 4 months before - May). Do nothing.

Potential Approach; although Santander advisor wouldn't confirm that this was possible. Part 2 deal ends November (early transition deal opens July/August). Assuming interest rates are similar try and bring together the deals and align the terms?

Plan B - if we can't take proposed potential approach above wait till November and change lender and swallow the SRV for 4 months. If your deal at Barclays is still available then I would jump at that!

Would you agree?
Thanks very much for your insight!

getmore4less

Need to know the no fee rates as well as the fee rates for switching
especially if they will charge it twice.

Maybe  they will guarantee only one fee for both parts even changed at different times,  £1,499 on £65k is not going to make sense.

I suspect that leaving it till the earliest time you can switch the Nov portion might be acceptable will align with one fee, that 1.55% rate is pretty good and just a short period on SVR.

To wait till Nov you are looking at £1k + the Barclays 7y is likely to cost another £1.75k  and with the 1.49% rate that won't be recoverable on a 0.06% differential.
.
What 2 year options are there if you want out from Santander







 

calmity72

@getmore4less
You have been a star. We are going to wait until July and see what is on offer and take it from there. 
I really dislike changing so want a five (or your seven deal now ;0)).
Thanks so much for your help. 

Thrugelmir

calmity72 said:

Santander are offering us the opportunity to align and remortgage for the full amount with them. However, on reviewing, I think there are much better deals available that would reduce our overall term by a couple of years still paying the same total mortgage payment.

8 months is a long time away.  Those better deals may not be available. Have you factored in the cost of remortgaging to your calculations, legal, valuation , exit fees etc.

If remortgaging and consolidating now with Santander results in a lower outgoing. You could use the freed up money to over pay the mortgage immediately along with the money you would have used to remortgage. 

getmore4less

Had time to think a bit I see three main options there will be others but I can't guess what retention offers are on your account, can you see them if you go online?

1. Take the £120k to 1.55% now from (1.79%)  20y 3m
   Whatever is on offer for the £64k when the window opens(July-Nov) from 2.99%
2. Let the £120k go variable(3.35%)  till £64k window opens so maybe 2 month max on SVR
   take a  deal for the whole lot at that time.
3. let the £120k go variable to Nov(4-5months) leave £64k on 2.99% till Nov(4m)
   switch lender

Between 1 and 2 we are looking at  ~1/2m SVR + ~3/4m extra on 1.79% for the £120k around  £450 total
(now we are down to the number of days the £120k sits on SVR so exact data for a more accurate amount.)

going for  3,  we have the £65k on 2.99% for 4months extra against say 1.54% that's another  £315 on top of the £725  of the £120k for 4months on svr and a bit for the extra time on 1.79% say 4m £100  say £1,100-1,200

I think you will struggle to recover any extra fees by waiting to swap lenders and the difference between 1&2 needs more refined data(dates) and the complete set of options in particular the  no fee/fee rates if 1 will involve multiple fees.

Another thing to look at is the run dates, these 5y mortgage are probably not 60 month  looks like the current batch are to  2July 2026.

Don't know how often they change(brokers may know) it may be you can close the gap for next time if the next batch are soon and get into the £65k window

What are rates going to do no one knows. 
My gut is they will stay low but might move a bit, the 95% market is opening up so that may take away funds from some lenders and they can suppress business on the lower LTV but increasing rates a bit.