Santander Mortgage Variable Reversion Rate

depressedandworried

Hi my friends.

I finally got to move to renting a room with a very old friend. She has just received a letter from Santander (re her mortgage statement for 2023) and is having sleepless nights because of what the letter says and she doesn't really understand it, so I said I would come here for advice

I thought it was easier to take pics of the letters (personal info removed).

She has owned this property for more than 30 years and remortgaged with Santander. I don't really understand it either tbh, but from what I can gather, her original mortgage was £20k (ish) and the remortgage was £28k (looking at the balance together on Amount Outstanding)

Her concern is what do these figures mean? She is panicking that she has to suddenly find £48,000!? as it says: 'Term Remaining 0yrs 8mnths'

Please could you advise as I am so worried about her. She's not sleeping and she has a very low income with no help from anywhere else.

Thank You MS Experts 🙏🏻

Peter999_2

Hi,

The two mortgages together are £48,000 (£20,000 + £28,000) and the mortgage is an interest only one.  This means she has only being paying the interest for all these years and not taking anything off the amount loaned.

If you take the £48,000 you will see that the 7.5% interest is about £3,602 a year which equates to £300 odd a month.  This should have been explained to her when she took out the mortgages, but has she never really understood maybe?

I'd ask her to urgently contact Santander and ask for help - how old is she?   Could she maybe extended the term of the mortgage and start paying off the loan as well as the interest.   Santander (or maybe Citizens Advice) are the best people to ask.

depressedandworried

Peter999_2 said:

Hi,

The two mortgages together are £48,000 (£20,000 + £28,000) and the mortgage is an interest only one.  This means she has only being paying the interest for all these years and not taking anything off the amount loaned.

If you take the £48,000 you will see that the 7.5% interest is about £3,602 a year which equates to £300 odd a month.  This should have been explained to her when she took out the mortgages, but has she never really understood maybe?

I'd ask her to urgently contact Santander and ask for help - how old is she?   Could she maybe extended the term of the mortgage and start paying off the loan as well as the interest.   Santander (or maybe Citizens Advice) are the best people to ask.

Thank You, very much appreciated 🙏🏻

Sadly (and I aggre with what you said), I don't think she understands/understood tbh that this was 'interest only'.

Really appreciate your advice and will pass this on to her.

PS: She is 65 yrs old

Sincerely x

Hoenir

Letters have been sent over some years now reminding people and asking them how they intend to repay their interest only mortgages. Santander have performed their duty of care. 

Emmia

I think she needs to talk to Santander,  depending on her income from pensions etc.she might be able to get a repayment mortgage...

Otherwise if she hasn't got £48k she'll need to sell up to repay the capital she owes  

Edit: hopefully the property has gone up in value enough so she has enough to buy somewhere else with the money left over.