Revised Santander mortgage rates

howden9

howden9 said:

Just seen that this 5 year £999 product switch is now at 4.03% to existing Santander customers, and 4.33% to new remortgage customers. 

Sorry 4.22% to new remortgage customers

Pezza4u

I noticed it went up earlier. I've still been making my mind up whether to fix for 2 or 5 years as we're looking to move at some point and I don't want to end up paying a big ERC.

On 4.03% I'd be paying £12 a month more than on 3.89%. I might hold on and see if Santander drop it again as I'm currently on a tracker.

fergie_

Rates are currently ticking up on a drip feed basis. Who knows how long for or if they will drop back again.

Hoenir

fergie_ said:

Rates are currently ticking up on a drip feed basis. Who knows how long for or if they will drop back again.

Liquidity is starting to tighten. New product fixes are estimated to be in the region of 1.6 million in 2024.  That excludes new mortgage advances. 

nyermen

Yup, HSBC put theirs up too.  I'd been sitting around wondering if they'd come down and therefore should I hold off getting a new rate locked in.  
On friday - for 60% LTV - switches went from 3.84% to 4.18% for a 5 year fix.

I got alerted on thursday night this was expected, and managed to click the buttons to get it set in, doesn't sound a lot, but its roughly saving me 2.5k of interest over the 5 year fix period (£42 a month or so)

Pezza4u

I logged on earlier to see that Santander have increased rates again. 5 year fix from 4.03% to 4.34%. Do they normally give notice if they're going to increase them?

I was still deciding whether to fix for 2 or 5 years as we will be moving, but wish I had gone for it at 3.89% now. Isn't hindsight wonderful!

Now I'm wondering whether to fix for 2 years at 4.74% or wait it out and see what happens. Currently on a 0.34% tracker, so 5.59% with base rate.

Hoenir

Pezza4u said:

I logged on earlier to see that Santander have increased rates again. 5 year fix from 4.03% to 4.34%. Do they normally give notice if they're going to increase them?

Rates can move at anytime. As market conditions and lending appetite dictates. 

howden9

Pezza4u said:

I logged on earlier to see that Santander have increased rates again. 5 year fix from 4.03% to 4.34%. Do they normally give notice if they're going to increase them?

I was still deciding whether to fix for 2 or 5 years as we will be moving, but wish I had gone for it at 3.89% now. Isn't hindsight wonderful!

Now I'm wondering whether to fix for 2 years at 4.74% or wait it out and see what happens. Currently on a 0.34% tracker, so 5.59% with base rate.

I noticed that yesterday. For new remortgage customers it is 4.45% as well. When does your current product end? It could be worth holding off depending on how long you have?

I kept on generating the offer from Santander when it was 3.89% (gave me 10/14 days to accept each time) until I was sure I wanted to accept

Pezza4u

Hoenir said:

Rates can move at anytime. As market conditions and lending appetite dictates. 

Yes of course, but I just wondered if they give customers a heads-up like they have done with the interest rate dropping on the savings account. I had an email about that giving me plenty of notice.

I have seen videos from some mortgage advisors saying they've heard rates will be increasing (or dropping) but hadn't seen anything recently about Santander.

howden9 said:

I noticed that yesterday. For new remortgage customers it is 4.45% as well. When does your current product end? It could be worth holding off depending on how long you have?

I kept on generating the offer from Santander when it was 3.89% (gave me 10/14 days to accept each time) until I was sure I wanted to accept

Our tracker ends in September 2025 so I'm hoping the base rate does start dropping soon. It doesn't seem worth fixing now, especially at 2 years when the difference is less than 1%. The current 5 year fix will be around £70 more a month than the 3.89%. Frustrating!

I panicked at the end of last year when the base rate kept increasing so switched to a lower tracker, then the BoE kept freezing it. I decided not to do anything rash this time but it looks like that has backfired.

I'm also on interest only (since before the charter)  and really want to get back on a repayment plan. If I fix online it will lock me in at interest only, so I need to phone them when I'm ready to switch back over and fix. Although I think there is no charge at the moment so could fix online first and then change it over afterwards. There doesn't seem to be an option to do both at the same time.

howden9

@Pezza4u obviously depends on your circumstances, but as you might move house and most indicators pointing to rate reduction in the next few months / most commentators looking at multiple cuts before the year ends you could be  better off sitting tight for now. 

You could also start your own 'repayment plan' by making overpayments to your current product in the interim if finances permit.