Santander Overhauls Mortgage Rates

Fri, 19 Jan 2018

Santander Overhauls Mortgage Rates
Santander, one of the UK's largest mortgage lenders, has decreased its highest lending rate. The move comes as a complete change to how the establishment charges its borrowers. When borrowers reach the end of their current fixed-rate deal they are usually moved to the lender's standard variable rate, 4.74pc. The change now offers borrowers a follow-on rate set at 3.25 percentage points above the Bank of England base rate (3.75pc).

To add perspective, for people with £150,000 outstanding they will save £83 per month on their mortgage payments with this new scheme. From January 23rd, 2018, anyone who takes out a loan with Santander will be automatically moved to the new rate at the end of any fixed-rate-deal.

For borrowers who are still paying the standard variable rate, most will be offered the chance to switch immediately. The new rate is set to be attractive to customers who might run into financial difficulties and be unable to remortgage. However, customers are advised to always start researching new deals three months before their fixed-rate deal expires.

Although this new scheme is a promising option, yet some borrowers will not be eligible for this new rate and risk losing out. Borrowers who have missed a payment or been in arrears for the past 12 months will remain on the standard variable rate. These borrowers are known as "mortgage prisoners".

The term "mortgage prisoners" refers to those who are stuck on the standard variable rate and unable change to a better deal.

Mortgage prisoners argue that the high rates they are being charged are the reason for their missed payments. They believe that they will continue to miss out, as they are stuck paying extra payments that leaves them financially worse off.

add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

Note: For a free no obligation chat with an independant mortgage specialist about your requirements please complete ourmortgage enquiry form below.

Mortgage, Remortgage or Buy-to-Let Mortgage Enquiry Form

Stop Press: Find the perfect mortgage!
Lending criteria has been relaxed and our specialists can find you great mortgage offers to compare.
Our team do all the work to find you the best offer
We'll help you find the best mortgage for your needs and ensure that everything runs as smoothly as possible.
Deposits required are again falling
The cost of the best deals has dropped recently for those borrowing either 80%, 85% or 90% of their property's value
Independent, searching the whole market
With 1000's of mortgage products available our mortgage brokers will source the mortgage that suits your situation.
Please complete this quick, free enquiry form.




mths

Your Details

Home Buyer Guides

Home Buyer News

Speak with an independant mortgage specialist

About Company

HomeBuyService.co.uk is part of the SFN Network of websites. Sitefinders Net Ltd is a U.K based company setup in 1995. Our core business is the development of online businesses using the generic domain name concept. We have a growing portfolio of websites in many different industries such as electronics, finance, retail, seasonal and health.

Privacy Policy
FAQ
Sitemap

Get in Touch