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Santander remortgage - 1.79% 5 year Fixed rate (75% LTV) - Product fee £999
1187° Expired

Santander remortgage - 1.79% 5 year Fixed rate (75% LTV) - Product fee £999

78
Posted 9th Jul
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 £80k to remortgage, otherwise TSB' £0 fee, 2.04% fix is a better deal for 75% LTV.

Lock in rate : 4 months in advance.
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No good to me. The only consideration would have been the 5 year fixed but with the £999 product fee factored in its actually worse than my 2.75% standard base rate mortgage.

This only benefits folks with a larger remaining mortgage amount probably £100K+ I guess .

Edit: in fact I can’t work out at any point where this drops below effectively 2.9% APR. So 100% not for me...and likely very subjective on who it does benefit.
Edited by: "DAZZ2000" 9th Jul
I refuse to use them while they are making ant & Dec richer
I've just done mine (existing Santander Mortgage) after a few clicks locked in with no fee at 1.99% for 7 years.
There were sliding rate deals available, but in the end thought peace of mind for 7 years was ok. Offers were 1.79 2 yrs, 1.89 3 years and 1.99 for 5 & 7 year deals (Going from memory there)
Edited by: "tigers66" 10th Jul
78 Comments
No good to me. The only consideration would have been the 5 year fixed but with the £999 product fee factored in its actually worse than my 2.75% standard base rate mortgage.

This only benefits folks with a larger remaining mortgage amount probably £100K+ I guess .

Edit: in fact I can’t work out at any point where this drops below effectively 2.9% APR. So 100% not for me...and likely very subjective on who it does benefit.
Edited by: "DAZZ2000" 9th Jul
Remember with remortgaging to use a capital balance calculator too. It’s not just about total payments over the period, but also the final position.
DAZZ200009/07/2019 21:48

No good to me. The only consideration would have been the 5 year fixed but …No good to me. The only consideration would have been the 5 year fixed but with the £999 product fee factored in its actually worse than my 2.75% standard base rate mortgage. This only benefits folks with a larger remaining mortgage amount probably £100K+ I guess .Edit: in fact I can’t work out at any point where this drops below effectively 2.9% APR. So 100% not for me...and likely very subjective on who it does benefit.



Sorry I might be being thick but £999 is equal to 1% (ish) of £100k. Therefore for a £100k mortgage for the first year the interest rate is effectively 1.79%+ 1% = 2.79%. For the next 4 years it’s 1.79%. How can you not get it below 2.9%?

am I going wrong somewhere?
DAZZ200009/07/2019 21:48

No good to me. The only consideration would have been the 5 year fixed but …No good to me. The only consideration would have been the 5 year fixed but with the £999 product fee factored in its actually worse than my 2.75% standard base rate mortgage. This only benefits folks with a larger remaining mortgage amount probably £100K+ I guess .Edit: in fact I can’t work out at any point where this drops below effectively 2.9% APR. So 100% not for me...and likely very subjective on who it does benefit.


I cant make your maths work.

100k over 25 years - the difference over 5 years of payments at 1.79 vs 2.75% is around £2500.
Tempting need to renew mine in a few months. How early can you lock in that rate?
I've got a 1.79% for three years and no fee offer.
r1biker09/07/2019 23:14

I've got a 1.79% for three years and no fee offer.



with whom?
Cheapasnowt09/07/2019 23:20

with whom?


Santander. There's a range of options, this 5 year one, or a few others like a three year one with no fee.

If you're within 4 months of your current deal ending with them you should be able to see the current offers.
I've just done mine (existing Santander Mortgage) after a few clicks locked in with no fee at 1.99% for 7 years.
There were sliding rate deals available, but in the end thought peace of mind for 7 years was ok. Offers were 1.79 2 yrs, 1.89 3 years and 1.99 for 5 & 7 year deals (Going from memory there)
Edited by: "tigers66" 10th Jul
J400uk09/07/2019 23:08

Tempting need to renew mine in a few months. How early can you lock in …Tempting need to renew mine in a few months. How early can you lock in that rate?


We renewed ours months ahead of the actual end date, enquire now.
This is a great deal. I had this exact deal 15 months ago from Santander when I remortgaged in anticipation of rising interest rates....surprised to see it appear again but it is very good deal..specially with £120/year cashback
J400uk09/07/2019 23:08

Tempting need to renew mine in a few months. How early can you lock in …Tempting need to renew mine in a few months. How early can you lock in that rate?


6 months for new customers. 4 months for existing.
DAZZ200009/07/2019 21:48

No good to me. The only consideration would have been the 5 year fixed but …No good to me. The only consideration would have been the 5 year fixed but with the £999 product fee factored in its actually worse than my 2.75% standard base rate mortgage. This only benefits folks with a larger remaining mortgage amount probably £100K+ I guess .Edit: in fact I can’t work out at any point where this drops below effectively 2.9% APR. So 100% not for me...and likely very subjective on who it does benefit.


The £999 is effectively an extra £200 per year over the 5 years. So yes this deal is for those with over £100k mortgages.

For you to say it's working out at effectively 2.9% you must have only £16/17k mortgage, definitely not for you!

Presume you must have a very low LTV too, so you'd benefit from Virgin's 1.94%, £0 fee
r1biker09/07/2019 23:14

I've got a 1.79% for three years and no fee offer.


Who with??
vicky250910/07/2019 07:26

Who with??


Read down from that post.....
Edited by: "Minstadave" 10th Jul
gadgetcake10/07/2019 06:27

6 months for new customers. 4 months for existing.


Is that Santander or UK? Quite handy to know when this 3 yr is over.
I refuse to use them while they are making ant & Dec richer
gadgetcake10/07/2019 06:37

The £999 is effectively an extra £200 per year over the 5 years. So yes t …The £999 is effectively an extra £200 per year over the 5 years. So yes this deal is for those with over £100k mortgages.For you to say it's working out at effectively 2.9% you must have only £16/17k mortgage, definitely not for you!Presume you must have a very low LTV too, so you'd benefit from Virgin's 1.94%, £0 fee



I wish!

Nowhere near that little left otherwise I'd have cleared it off!

Not far off moving but was tempted to keep this current mortgage and just get a different product for the difference. The difference will be fairly significant though so as is always the way - I'll look at it in a different light at that point!
brooky09/07/2019 22:10

Sorry I might be being thick but £999 is equal to 1% (ish) of £100k. T …Sorry I might be being thick but £999 is equal to 1% (ish) of £100k. Therefore for a £100k mortgage for the first year the interest rate is effectively 1.79%+ 1% = 2.79%. For the next 4 years it’s 1.79%. How can you not get it below 2.9%? am I going wrong somewhere?



No, you're right and I'm wrong. Sorry!

I relied on Santander's calculator too much. Their "Overall Cost for Comparison" (APRC) quoted either 2.9% or 3% no matter how I tweaked things. Even set it as a 5 year term so it should never then drop to their standard 4% thereafter and it sill quoted 2.9% APRC!

It's not the most accurate calculator!

I was trying to work out whether or not it was worth ramping up my payments and decreasing the mortgage term significantly and it just didn't seem worth it. That'll teach me to rely on their maths...and not check myself after too many glasses of wine
DAZZ200010/07/2019 09:30

No, you're right and I'm wrong. Sorry!I relied on Santander's calculator …No, you're right and I'm wrong. Sorry!I relied on Santander's calculator too much. Their "Overall Cost for Comparison" (APRC) quoted either 2.9% or 3% no matter how I tweaked things. Even set it as a 5 year term so it should never then drop to their standard 4% thereafter and it sill quoted 2.9% APRC!It's not the most accurate calculator!I was trying to work out whether or not it was worth ramping up my payments and decreasing the mortgage term significantly and it just didn't seem worth it. That'll teach me to rely on their maths...and not check myself after too many glasses of wine



No problem I was just checking the method I’ve used over the years wasn’t complete nonsense!! Mortgage rates and bank interest rates are so similar these days that it isn’t that attractive to over-pay / reduce terms etc. In my view it’s better to have the money in the bank in case of unexpected expenses rather than be committed to a short, high-paying mortgage .
Just looking at the ERC section, it says: 5% + Repay paid legal fees

Does that mean we'll have to pay them back for the legal fees if we want to overpay?
jameswalker45710/07/2019 08:17

Is that Santander or UK? Quite handy to know when this 3 yr is over.


Each bank has a different policy, 6 and 4 is Santander. Unfortunately I've not been able to find a resource the reliably maintains this timing for each provider. Pretty much all will do at least 3 months in advance and I don't know anyone that does more than 6 months. So that's the range.
xsor10/07/2019 10:25

Just looking at the ERC section, it says: 5% + Repay paid legal feesDoes …Just looking at the ERC section, it says: 5% + Repay paid legal feesDoes that mean we'll have to pay them back for the legal fees if we want to overpay?


Up to 10% per year overpayment is without penalty. Any amounts over that attract a 5% ERC, and yes, it does seem they'll want to also claw back the legal costs.
Outrageously, this is for new customers only. Tried to switch my current, expiring deal to this and told nope.
kev_the_great10/07/2019 10:59

Outrageously, this is for new customers only. Tried to switch my current, …Outrageously, this is for new customers only. Tried to switch my current, expiring deal to this and told nope.


It's an online only deal, so if you asked over the phone they wouldn't offer it. Have you tried the online tool?
mortgage.santander.co.uk/

I'm a non-Santander customer considering remortgaging to them, so I'm intrigued to know how they'll treat me if I'm an existing customer, please do report back your findings!
I switched online last year to an almost identical deal from an existing Santander deal. No problem at all.
gadgetcake10/07/2019 10:53

Up to 10% per year overpayment is without penalty. Any amounts over that …Up to 10% per year overpayment is without penalty. Any amounts over that attract a 5% ERC, and yes, it does seem they'll want to also claw back the legal costs.


Damn, I wonder how much legal costs amount to?
xsor10/07/2019 12:04

Damn, I wonder how much legal costs amount to?


Likely to be around the £500 mark, surely the 5% EPC is more of a concern!?
xsor10/07/2019 10:25

Just looking at the ERC section, it says: 5% + Repay paid legal feesDoes …Just looking at the ERC section, it says: 5% + Repay paid legal feesDoes that mean we'll have to pay them back for the legal fees if we want to overpay?


I think the legal fees repayment only kick in if you were to settle the mortgage.in full. The ERC will apply for any annual over payments above 10%.
gadgetcake10/07/2019 11:03

It's an online only deal, so if you asked over the phone they wouldn't …It's an online only deal, so if you asked over the phone they wouldn't offer it. Have you tried the online tool?https://mortgage.santander.co.uk/I'm a non-Santander customer considering remortgaging to them, so I'm intrigued to know how they'll treat me if I'm an existing customer, please do report back your findings!


The best rates are not available to existing customers. Being an existing customer I was offered nearly 0.05% to 0.10% higher interest rate than what is available for new customers.
There was a online only 1.35% deal with 999 fee and even with the same criteria(LTV) the best I was offered was 1.44% with 999 fee.
I was in the same boat as many here who are looking to find out which deal provides best value for money.

The main aspect is to check how much the bank takes away i.e. in interest and fees. Anything you pay towards the principle mortgage amount, in effect you are paying yourself. So you can either keep the money with you or you pay towards the principle amount(which will go into increasing equity).

I asked Santander how much I would pay towards interest and the rep said that he did not have that figure. The only figure he would give me was repayment/combined amount (principle+ interest), which is not very useful when you want to compare different deals and to find out what bank takes away thru interest and fees.
Good deal let's wait for the no deal brexit interest should go down further again
I'll take my chances with my 0.95% variable, thanks.
I just took a 1.99% 2 year fix with them on remortgage but am within 14 days so hope I can improve this by contacting them tomorrow! I owe over 80k. This should benefit me I think?
Is it just me or does their logo look like a steaming turd emoji?
gadgetcake10/07/2019 10:53

Up to 10% per year overpayment is without penalty. Any amounts over that …Up to 10% per year overpayment is without penalty. Any amounts over that attract a 5% ERC, and yes, it does seem they'll want to also claw back the legal costs.


The ERC is not clear. Most banks have a tapering of ERC (eg 5%, first year; 4 % 2nd year ...1% final year) which to me means if u pay the mortgage in full from selling the house or win a lottery and clear the dues before the fixed term you pay this fee. Is the ERC the same ie 5% for the duration of 5 years in this case ?
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Just remember that unless you’re paying that grand up front, you’ll be paying interest on it for the full term. Not just the fixed rate
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gadgetcake10/07/2019 13:08

Likely to be around the £500 mark, surely the 5% EPC is more of a concern!?


“We pay your standard legal fees (worth £200). They must be repaid if you repay your mortgage within the first two years.”
interest only you need mortgage = (£999/5)/(feefreerate - 1.79%) to break even

for the early example of example of 2.04% that's £80k mortgage

Shorter the full term the bigger the mortgage or bigger rate difference you need to make it work
eg over for 2.04% - 1.79%

25y will be over £90k
wonder whether i can get a decent deal on a Buy to let (i am currently with Santander)
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