Santander offset mortgage

silvercar

aedenbor said:

The original offer was from Abbey. Since I last wrote, it got worse. Santander now wants to do  affordability check every time I drawdown from available funds which are my own savings on capital repayment basis. 

I have found the original T&C and there is nothing on automatic repayment of the mortgage if offset savings equal the mortgage nor about capital repayment. I’ve been a customer over 20 year and never been in areas. It is strange Santander’s policy changed so much, they used to be a good lender. 

They can’t change the original T&Cs unless the T&Cs have a clause allowing them to do so. Your option is to follow their complaints procedure and if you are not happy go to the ombudsman. Though we have read cases on here where the ombudsman case officers haven’t properly understood how offset mortgages work.

aedenbor

Thank you, have submitted the complaint to Ombudsman, let’s see what happens  🤞

Hoenir

silvercar said:

aedenbor said:

The original offer was from Abbey. Since I last wrote, it got worse. Santander now wants to do  affordability check every time I drawdown from available funds which are my own savings on capital repayment basis. 

I have found the original T&C and there is nothing on automatic repayment of the mortgage if offset savings equal the mortgage nor about capital repayment. I’ve been a customer over 20 year and never been in areas. It is strange Santander’s policy changed so much, they used to be a good lender. 

They can’t change the original T&Cs unless the T&Cs have a clause allowing them to do so.

Which they do frequently as they can. With revisions to T&C's normally included with the annual mortgage statement when it's sent. Lenders themselves having to contend with changes in the regulatory regime. 

silvercar

I would have thought making an offset mortgage a repayment mortgage by taking away key features, is a fundamental change, rather than a change in the terms. I’ll be interested in the result of the complaint.