Remortgage - Just a simple renewal (Product Transfer)?

homeless9

Hi,

As my first ever mortgage renewal is coming up on the 1st June 2025 I thought I'd start thinking about what to do.

I've had a nice low £360 a month mortgage payment for the past 4.5 years with my bank, Santander. I have made a decent amount of overpayments. Based on Santander's 'Compare Our Mortgage Rates' online tool, as it currently stands they'd want £410 a month from me.

Not sure what the rates are going to be doing by June 2025, but I hope they will drop slightly. My hope was I'd be paying ~£360 a month for the coming 5 years, but maybe I won't get it that low now after Labour screwed everything.

I won't be able to get an official offer from Santander until early February.

Questions:

-Would Santander want to send someone round to value the property again?

-Arrangement fee - what is the cost of this? Google says £1000-£2000. If true - then ruddy hell, I didn't expect to have to throw £1000+ down the drain. EDIT: realised this is also called a Product Fee. ok - personally I'd choose a mortgage without a product fee, but higher monthly costs.

-As I would not go with a mortgage with a product fee, then hopefully I won't have to pay anything to complete the product transfer? or is there a cost I should be made aware of?


Any other thoughts appreciated....

GrumpyDil

If you choose a renewal offer then no they won't come around to inspect the house. And as you have worked out you could have a product fee if you choose an offer with a fee but otherwise I wouldn't expect any charges. 

ACG

1) No. 
2) You have the option, lower rate with a fee, higher rate with no fee. Typically smaller mortgages (which I am guessing yours is) would be better with the higher rate option. 
3) No costs usually, just check the product details first.