Santander remortgage - 1.62% 5 year Fixed rate (75% LTV) - Product fee £999
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Santander remortgage - 1.62% 5 year Fixed rate (75% LTV) - Product fee £999

64
Posted 7th Oct
Remortgages only

£999 Product fee
Valuation - no fee, included
Legal fees - no fee, included

Annual over payment allowance - 10%

If you have one of Santander's 123 accounts you also get 1% cashback on the first £1,000 of your monthly mortgage payment (presuming your payment comes out of the 123 account).

So that's a potential £120 yearly cashback.

Note - Product fee means this benefits those with over larger remortgages, otherwise £0 fee, higher %age fixes will be better.

Lock in rate : 4 months in advance.
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The 5Y fix without product fee is 1.84%. This worked out better for me.
64 Comments
I tried to get mortgage with these but they really dont like me and give me a big NO
fab, been waiting fpor it to creep down. Shall i hang on till the 31st oct though? thats the question im pondering. If I lock the rate in and it goes down a bit more, does anyone know if santander will adjust the rate?
Edited by: "spicy_gal" 7th Oct
GBP 225 exit fee might rather make this product more expensive than Barclays 1.63% 5Y product
spicy_gal07/10/2019 13:37

fab, been waiting fpor it to creep down. Shall i hang on till the 31st oct …fab, been waiting fpor it to creep down. Shall i hang on till the 31st oct though? thats the question im pondering. If I lock the rate in and it goes down a bit more, does anyone know if santander will adjust the rate?


Yes you can, my current mortgage (another provider) is up on 31 Dec, and I've a mortgage offer from Santander. I've been holding tight on accepting the offer and everytime they adjust their rate you can log in and request to change to another product.
MarketBuzz07/10/2019 13:48

GBP 225 exit fee might rather make this product more expensive than …GBP 225 exit fee might rather make this product more expensive than Barclays 1.63% 5Y product


Agree, for me personally, Santander's willingness to switch product without charge outweighs this.

FYI, with Barclays Product Switch Fee = £150 :
"At Barclays, if you wish to switch the mortgage product you have chosen after an offer has been made by us, but prior to completing your mortgage, additional fees may apply"
spicy_gal07/10/2019 13:37

fab, been waiting fpor it to creep down. Shall i hang on till the 31st oct …fab, been waiting fpor it to creep down. Shall i hang on till the 31st oct though? thats the question im pondering. If I lock the rate in and it goes down a bit more, does anyone know if santander will adjust the rate?


I had previously found a way to overcome this dilemma but a little work is needed.

First call and ask them to select the product that you want. They will then choose it and send you the paperwork out to sign. Your product is not confirmed as selected unless they receive the signed paperwork back. However the product stays reserved for 14 days(irrespective of the rates movement).
Wait for the 14 days and see if the rate moves; if it goes up sign and return by the 14th day; if it goes down call again and book the new rate and the 14 day process starts again. If it does not move then call after the 14 day period and book again to get another 14 days.
The customer services had confirmed to me that being a day or two late to return the paperwork was still ok and you can still get the product rate.
All the best.
When we see lenders extending the period and/or slightly reducing the rate on fixed rate mortgages, it's a sign they think rates are going to drop. They want to lock customers in by sweetening the offer, just in case the base rate goes down. If they are likely to fall, you'll also see a sudden increase in the quantity of available products from all of the lenders.

Watching what lenders are doing with their rates is probably a more reliable method of predicting base rate changes than reading the MPC notes each month. When fixed rate mortgages start to become scarce, or become less attractive, expect a rate rise soon.
The 5Y fix without product fee is 1.84%. This worked out better for me.
Don't forget to look at the deals without a fee - the headline interest rate is what gets people signed-up, but quite often the £1000 isn't saved when you take the lower interest rates.
i have a mortgage already with these will i be able to apply for this?
Shocking bank stay clear
Interesting. I'm in my last 4 months of my current deal (literally had my letter today) and they're only offering me 1.74% for the same 5 year fix/£999 product fee. That's with <60% LTV too.

Not that it matters to me as mentioned above, the product fee would outweigh any savings of a lower interest rate with our current amount left to pay. But a heads up for anyone currently re-mortgaging to double check their 'best' deals.
Edited by: "Xevan" 7th Oct
villians198407/10/2019 16:35

Shocking bank stay clear


YMMV - have been with them for most of the last decade. One issue (my own fault) in all that time and have had a mortgage with them as well.
MarketBuzz07/10/2019 13:48

GBP 225 exit fee might rather make this product more expensive than …GBP 225 exit fee might rather make this product more expensive than Barclays 1.63% 5Y product


I am so pumped to remortgage next year - our current 5 year fix is nearly 2% higher than this!
Xevan07/10/2019 16:43

Interesting. I'm in my last 4 months of my current deal (literally had my …Interesting. I'm in my last 4 months of my current deal (literally had my letter today) and they're only offering me 1.74% for the same 5 year fix/£999 product fee. That's with <60% LTV too. Not that it matters to me as mentioned above, the product fee would outweigh any savings of a lower interest rate with our current amount left to pay. But a heads up for anyone currently re-mortgaging to double check their 'best' deals.


Being an existng customer, I too got a higher rate (about 0.09% higher) than what was available for newer customers for similar LTV!
AstalaVista07/10/2019 17:24

Being an existng customer, I too got a higher rate (about 0.09% higher) …Being an existng customer, I too got a higher rate (about 0.09% higher) than what was available for newer customers for similar LTV!


Natwest were the worst for me, absolutely awful rates offered as an existing customer.

Really noncompetitive, I have 60% LTV but the rates they offered were more like 90%!
lf1983lf07/10/2019 17:12

I am so pumped to remortgage next year - our current 5 year fix is nearly …I am so pumped to remortgage next year - our current 5 year fix is nearly 2% higher than this!


So pumped lol
lf1983lf07/10/2019 19:29

It will save a fair bit!


Yes I know I just found the choice of word amusing lol
Getting a lot more offers at a better rate - 1.59% with the same product fees!
VirginMoney, PostOffice, Barclays, HSBC, NatWest!!!! Am I missing something!?
Could be the LTV as I only require 40%.
Edited by: "ruheluddin86" 7th Oct
89quidyoucantgowrong07/10/2019 14:16

When we see lenders extending the period and/or slightly reducing the rate …When we see lenders extending the period and/or slightly reducing the rate on fixed rate mortgages, it's a sign they think rates are going to drop. They want to lock customers in by sweetening the offer, just in case the base rate goes down. If they are likely to fall, you'll also see a sudden increase in the quantity of available products from all of the lenders.Watching what lenders are doing with their rates is probably a more reliable method of predicting base rate changes than reading the MPC notes each month. When fixed rate mortgages start to become scarce, or become less attractive, expect a rate rise soon.


Lenders use Libor rather than the base rate so not sure it’s too reliable. Of course the two things can go hand in hand from time to time
Will be 1.5 5 year fixed deals in a few weeks. Would hold off applying if you’re in no rush.
ruheluddin8607/10/2019 19:40

Getting a lot more offers at a better rate - 1.59% with the same product …Getting a lot more offers at a better rate - 1.59% with the same product fees! VirginMoney, PostOffice, Barclays, HSBC, NatWest!!!! Am I missing something!?Could be the LTV as I only require 40%.


Bizarre post.

Of course it's because you have only 40% LTV, totally different risk profile and rates, not like for like at all.

This is for those that need 75% LTV.
donny126607/10/2019 20:24

Will be 1.5 5 year fixed deals in a few weeks. Would hold off applying if …Will be 1.5 5 year fixed deals in a few weeks. Would hold off applying if you’re in no rush.


Nice crystal ball, did you find that on hotukd?
gadgetcake07/10/2019 21:48

Bizarre post.Of course it's because you have only 40% LTV, totally …Bizarre post.Of course it's because you have only 40% LTV, totally different risk profile and rates, not like for like at all. This is for those that need 75% LTV.


In that case it’s only marginally better, I should be getting rates at 1%! Lol
FYI - I switched to a Santander mortgage entirely online. Easy enough process but a word of warning...

Make sure you action every request of theirs ASAP!

This is because their processing centres are often lagging behind by a week or so. For example they might be working on something from a week ago today.

It's in your best interest to get your bits added to the queue as soon as poss otherwise you'll find yours won't be actioned for some time. Don't be surprised if you don't hear back from them for days on end.
Thanks I've got a 2 part mortgage and the second part wasnt due to roll over till Oct. Just saved myself 0.15 percent over 3
My 2 year fixed rate ended over 3 years ago and I've been paying the Santander SVR ever since. The house was only £100,000 with £25,000 deposit and now 5years of payments. Am I better off remortgaging?
grahamchalker08/10/2019 11:33

My 2 year fixed rate ended over 3 years ago and I've been paying the …My 2 year fixed rate ended over 3 years ago and I've been paying the Santander SVR ever since. The house was only £100,000 with £25,000 deposit and now 5years of payments. Am I better off remortgaging?


That is insane, and that would be costing you so much money.

Yes, you should have remortgaged 3 years ago.
grahamchalker08/10/2019 11:33

My 2 year fixed rate ended over 3 years ago and I've been paying the …My 2 year fixed rate ended over 3 years ago and I've been paying the Santander SVR ever since. The house was only £100,000 with £25,000 deposit and now 5years of payments. Am I better off remortgaging?


What @LordHippos said, you need to remortgage ASAP. Not to this deal as the fee is too high, but to a no fee deal. Pretty much ANY deal is better than you are currently paying.
Edited by: "gadgetcake" 8th Oct
DevK08/10/2019 06:18

FYI - I switched to a Santander mortgage entirely online. Easy enough …FYI - I switched to a Santander mortgage entirely online. Easy enough process but a word of warning...Make sure you action every request of theirs ASAP!This is because their processing centres are often lagging behind by a week or so. For example they might be working on something from a week ago today. It's in your best interest to get your bits added to the queue as soon as poss otherwise you'll find yours won't be actioned for some time. Don't be surprised if you don't hear back from them for days on end.


Did you bank with them before taking out the mortgage?
Should I wait or take out the best deal going now... hmmm
gadgetcake08/10/2019 11:45

What @LordHippos said, you need to remortgage ASAP. Not to this deal as …What @LordHippos said, you need to remortgage ASAP. Not to this deal as the fee is too high, but to a no fee deal. Pretty much ANY deal is better than you are currently paying.


On it!!!
LordHippos08/10/2019 11:35

That is insane, and that would be costing you so much money.Yes, you …That is insane, and that would be costing you so much money.Yes, you should have remortgaged 3 years ago.


Will get onto my bank Barclays and see what gives. Thanks
ruheluddin8608/10/2019 12:17

Did you bank with them before taking out the mortgage? Should I wait or …Did you bank with them before taking out the mortgage? Should I wait or take out the best deal going now... hmmm


Hi, yes I banked with them beforehand but I don't think this makes any difference. The online portal for the mortgage application process is different to their personal online banking portal.

If your current mortgage is due to end any time soon, I'd switch now else you'll be put on your current lender's standard rate.

If you can afford to wait for a better deal with someone else, then why not.
DevK08/10/2019 12:23

Hi, yes I banked with them beforehand but I don't think this makes any …Hi, yes I banked with them beforehand but I don't think this makes any difference. The online portal for the mortgage application process is different to their personal online banking portal. If your current mortgage is due to end any time soon, I'd switch now else you'll be put on your current lender's standard rate. If you can afford to wait for a better deal with someone else, then why not.


I still have until Feb until it expires. I’m just concerned if the rates get higher!?
grahamchalker08/10/2019 12:22

Will get onto my bank Barclays and see what gives. Thanks


You should speak to a broker, just make sure it's fee-free. They'll find you a better deal than your bank is likely to offer you, and they will do most of the paperwork for you too. They usually get a referral cut from the bank.

You'll probably want a mortgage without a product fee if it's only £75K.
ruheluddin8608/10/2019 12:25

I still have until Feb until it expires. I’m just concerned if the rates g …I still have until Feb until it expires. I’m just concerned if the rates get higher!?


It might not be a bad idea to start if it's Feb. I think it's normally advisable to allocate a few months for a remortgage to go through.

I think you should also be able to nominate a date for the switch to happen so you could do all the leg work and lock it in. Maybe someone else could confirm this?
ruheluddin8608/10/2019 12:25

I still have until Feb until it expires. I’m just concerned if the rates g …I still have until Feb until it expires. I’m just concerned if the rates get higher!?


No harm in applying now but then sitting on the mortgage offer. For example Santander let you add the product fee to the total amount borrowed.

So it costs you only your time to do the mortgage application now. It'll take a few weeks anyway and the mortgage offer is valid 4 months, so that takes you to end of Feb.

Then at least you have a rate secured. If rates get better, great, until you sign and accept the mortgage offer you are not tied in, so you can take until early Feb deciding if you like, knowing you've got a good rate in the bag, in case things go the other way!
gadgetcake08/10/2019 13:02

No harm in applying now but then sitting on the mortgage offer. For …No harm in applying now but then sitting on the mortgage offer. For example Santander let you add the product fee to the total amount borrowed.So it costs you only your time to do the mortgage application now. It'll take a few weeks anyway and the mortgage offer is valid 4 months, so that takes you to end of Feb.Then at least you have a rate secured. If rates get better, great, until you sign and accept the mortgage offer you are not tied in, so you can take until early Feb deciding if you like, knowing you've got a good rate in the bag, in case things go the other way!


Thanks, mortgage offer valid for 4 months with all banks?
Edited by: "ruheluddin86" 8th Oct
LordHippos08/10/2019 12:25

You should speak to a broker, just make sure it's fee-free. They'll find …You should speak to a broker, just make sure it's fee-free. They'll find you a better deal than your bank is likely to offer you, and they will do most of the paperwork for you too. They usually get a referral cut from the bank.You'll probably want a mortgage without a product fee if it's only £75K.


Brokers charge, there’s no need for them! Just use the net, everything at your fingertips.
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