Tracker Mortgage query

kev2009

Hi all,
So my existing fix is coming to a end later this year and provider has already messaged me saying I can choose a new deal.  I've been on the app and it shows several deals and I'm considering the 2yr tracker deal they have at the moment.  I've asked them some questions and 1 question they didn't actually answer but the answer they provided I didn't get.
I basically asked them if i took the 2yr tracker and during the 2 years, interest rates went higher, could I change to a fixed mortgage deal and would there be any fee for doing so.  They replied advising if interest rates went down and i was outside the 14 days before it was due to start, I could call there retentions team to see if they had a lower deal and I'd not have to pay a fee.  Now the 2 year tracker tracks the base rate, so if the base rate goes down, then surely the tracker goes down too? or Have I missed something?


Thanks

Kev

ACG

Who is the lender? Does it have a product code? 

kev2009

Santander, I didn't see a product code listed on the app.  I look online and couldn't see it listed. Found similar one but its not the same rate.

I found out if i signed up now, i couldn't make any future OP until tracker starts so I've made my OP now and will give it a few days to go through, then sign up, just hoping deal still available then.

Kev

housebuyer143

If it's a fixed tracker with ERCs you cannot leave during the fixed term without penalty. If it's ERC free then you can. 

grumpy_codger

https://www.santander.co.uk/personal/support/loans-and-mortgages/types-of-mortgage-explained

"A tracker rate mortgage might suit you if:"

• ...
• you think you might want to make unlimited overpayments on your mortgage to pay it off quicker."

https://www.santander.co.uk/personal/mortgages/existing-customers

"Tracker rate

Best for:

For people who think interest rates might change in the next few years or want to make unlimited overpayments."

IMO this means no ERC.

housebuyer143

Looking at their product transfer rates they do have 1 product at 60% ltv with no ERCs. Make sure you look for it to ensure you get the right one.

kev2009

Thanks all, think I'm going to sign up to it, it seems my OP is now showing up so should be good to sign up to it now.

Kev

kev2009

Have taken the 2yr tracker, have to say, somewhat confusing, as they have taken the amount to be what it is now as opposed to what it will be when my existing Fix ends (after the standard payments between now and end date) and this new one will start.  I've had a email saying I'll receive details of when it will start within 5 days so fingers crossed they realise this is to start once my existing fix ends and not to start within 14 days.
Waiting to see what happens, I've also messaged them via online banking but they are not there until tomorrow.

Kev

kev2009

Just to update - they have confirmed the 2yr tracker mortgage now and it is due to start after my fix so that's all good.  However, they haven't confirmed the amount the new mortgage will start on, which is a bit confusing as obviously I can no longer make any OP, so therefore, it will only be my regular monthly payments being made.  I was expecting the letter to confirm the starting amount will be £x, assuming all payments are made up to the start date. But nothing, other than confirming the start date.  So I'll just make a note of what it is after my last payment and use that as the starting figure.  The previous letter showed the amount as the amount I owe right now as opposed to what it will be come when the 2yr tracker kicks in.

Kev

MWT

kev2009 said:

I was expecting the letter to confirm the starting amount will be £x, assuming all payments are made up to the start date. But nothing, other than confirming the start date.

As it is a tracker they can't really tell you in advance I guess as it will depend on the rate it is tracking....