Santander Mortgage Fees

logie48

Quick question, hopefully someone can quickly answer.
On the MSE comparison website, all Santander mortgages come with a £225 fee, which is an account fee, however there is another fee called an 'Early Redemption Fee', marked as a 'Clawback Fee'. Can anyone explain what this 'Clawback Fee' is? Is it in a few in addition to the Early Repayment Charge, if you go over the agreed overpayment, or is this a mandatory fee that needs paid, similar to the £225 account fee?
There is no explanation of this fee in the Santander mortgage tariff sheet.
Thanks

[Deleted User]

Usually they will clawback any introductory cashback if you redeem the mortgage early. Probably something like that

logie48

Deleted_User said:

Usually they will clawback any introductory cashback if you redeem the mortgage early. Probably something like that

Thanks.
I don't believe there is any cashback as part of their mortgages, plus it is added onto the overall cost comparison, so it seems as though it is a mandatory fee, regardless if it is paid early.
I don't know if MSE actually have it correct 

K_S

logie48 said:

Quick question, hopefully someone can quickly answer.
On the MSE comparison website, all Santander mortgages come with a £225 fee, which is an account fee, however there is another fee called an 'Early Redemption Fee', marked as a 'Clawback Fee'. Can anyone explain what this 'Clawback Fee' is? Is it in a few in addition to the Early Repayment Charge, if you go over the agreed overpayment, or is this a mandatory fee that needs paid, similar to the £225 account fee?
There is no explanation of this fee in the Santander mortgage tariff sheet.
Thanks

@logie48

- The £225 is called an "Account fee for managing your mortgage" by Santander. This fee will be due once for the mortgage, usually when you remortgage away. 

- As JMA said, the 'clawback fee' is basically a reimbursement of any product incentives (cashback, legal fees, etc) if you redeem the mortgage before x years from completion or the end of the fixed period.

This may or may not be applicable depending on whether the product you apply for comes with any incentives.

The offer document will detail all this.

logie48

K_S said:

logie48 said:

Quick question, hopefully someone can quickly answer.
On the MSE comparison website, all Santander mortgages come with a £225 fee, which is an account fee, however there is another fee called an 'Early Redemption Fee', marked as a 'Clawback Fee'. Can anyone explain what this 'Clawback Fee' is? Is it in a few in addition to the Early Repayment Charge, if you go over the agreed overpayment, or is this a mandatory fee that needs paid, similar to the £225 account fee?
There is no explanation of this fee in the Santander mortgage tariff sheet.
Thanks

@logie48

- The £225 is called an "Account fee for managing your mortgage" by Santander. This fee will be due once for the mortgage, usually when you remortgage away. 

- As JMA said, the 'clawback fee' is basically a reimbursement of any product incentives (cashback, legal fees, etc) if you redeem the mortgage before x years from completion or the end of the fixed period.

This may or may not be applicable depending on whether the product you apply for comes with any incentives.

The offer document will detail all this.

Ah that makes sense, so as they include free legal fees, valuation, etc, they look to recover if you settle mortgage early.
I think the MSE mortgage comparison on Santander mortgages needs to be changed in this case, as they include them as part of the over all cost comparison, which if you see through the deal (where the vast majority will do), then you don't need to pay this. Brings them down the pecking order as well on the list of products.
Many thanks for your explanation

K_S

@logie48 Just to be clear, my explanation was based on Santander's general offer conditions, not a comment on the mechanics of the MSE mortgage finder  

dj1471

There’s £250 cashback on Santander mortgages at the moment (in addition to free valuation).

The best comparison site I’ve found found that factors in all fees and cashback is Compare the Market who use data from L&C (you have to give L&C your personal details before you can see rates on their own site, not so with CTM).