By Mark Banham. Santander will extend the maximum interest-only mortgage lending age from 65 to 70 from next Tuesday 7 February. The new policy applies to customers who choose to have any part of their mortgage as interest-only. Miguel Sard, managing director of mortgages at Santander UK, said: We know that the lending landscape is changing, people are living longer and want access to borrowing into later life. The bank said it saw "strong inflows" in net mortgage lending during the year, driven by buy-to-let demand and lower redemptions, but this was offset by "management pricing actions" which hit its mortgage approvals.
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- If you don t ask … the secret remortgage rates for special customers
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- As the interest-only mortgage crisis hits, here’s how you can avoid the heartache
- Latest mortgage rates
- Remortgage options for existing Santander borrowers after standard variable rate rise
- Santander releases a 80% LTV mortgage deal at just %.
Fixed Rate Mortgage
To port your client s mortgage, you ll need to know the existing loan amount, product code and loan term. To avoid delays, this information needs to be as accurate as possible. Your client can get this information by contacting Santander Mortgage Operations on When they call, they ll be asked to provide their mortgage account number shown on their Annual Mortgage Statement and confirm their identity.
If there s no ERC payable on the existing products, the applicant can port their existing product or select a new product for the whole mortgage. For products where an ERC is payable:. If there s six months or less left on current deal at application. If there s more than six months left on deal at application. For more information, please see our Does your client want to port their existing mortgage? If the purchase of the new property completes within three months of the redemption date of the existing mortgage, then the existing product can be ported to the new mortgage.
On redemption of the existing mortgage, the ERC is paid in full and will be refunded after completion of the new purchase. If the new mortgage is less than the existing mortgage, the ERC refund will be a proportionate amount. Please note: Where any loan part is on interest only, we can consider applications to port the mortgage to a new property.
View our lending criteria and Interest only repayment vehicle guide for more information. If your client is porting and topping up, they must top up using their Flexible Offset product. Please speak to your dedicated contact who will be able to advise you of the process. A valuation fee may be payable. In some cases, we may not be able to match the exact rate and will therefore provide an alternative which will always be lower.
Top ups can be selected from our new business range. You won t be able to submit a porting application on your client s behalf. All applications are subject to our current lending criteria. Santander for Intermediaries is a brand of Santander UK plc and is not a regulated company. Santander UK plc. Registered Office: Registered Number Registered in England and Wales.
Telephone Calls may be recorded or monitored. Our Financial Services Register number is Santander and the flame logo are registered trademarks. Find out more. Got it! For use by mortgage intermediaries only. Home Products and criteria Moving home. Useful links Lending criteria Latest rates Useful downloads Does your client want to port their existing mortgage? File size: Port an existing product Porting is when an existing Santander mortgage customer moves home and transfers their mortgage product for the remainder of its term.
Key criteria Products can only be ported when it s for the purchase of a property. It s not possible to port a product to a property that s owned mortgage-free or is being remortgaged. Porting applications are always subject to the conditions for transferring the loan to a new mortgage in the customer s Mortgage Terms and Conditions. A valuation fee will be payable unless the applicants are borrowing more and topping up with a new business product which comes with a free standard valuation.
Redemption and completion on the same day simultaneous. For products where an ERC is payable: If there s six months or less left on current deal at application If the applicant is borrowing the same or more: If the applicant is borrowing less: If there s more than six months left on deal at application If the applicant is borrowing the same or more: Redemption and completion on different days non-simultaneous. The applicant must port the whole amount across to the new property to receive a full ERC refund.
This does not include Flexible Offset mortgages which must redeem and complete on the same day simultaneous. Borrowing the same or more On redemption of the existing mortgage, the ERC is paid in full and will be refunded after completion of the new purchase. Borrowing less If the new mortgage is less than the existing mortgage, the ERC refund will be a proportionate amount.
Interest only. If the application meets our current lending criteria , you can submit the application to us through Introducer Internet. Flexible Offset. The Flexible Offset mortgage can be ported. Redemption and completion must be on the same day simultaneous. A valuation fee will be payable. ERC waiver process If redemption and completion: All rights reserved Santander for Intermediaries is a brand of Santander UK plc and is not a regulated company.
If the applicant is borrowing the same or more:
If you don t ask … the secret remortgage rates for special customers
Make an overpayment when it suits you. Log on. You can also make overpayments in Online Banking. You can make an overpayment to reduce your monthly payments online or by phone. You can view your mortgage using Online and Mobile Banking.
If you already have a mortgage with us but want to change your deal, there will be no affordability or income checks, no legal or valuation fees to pay and no new Direct Debits to set up. You can also arrange your new deal through an Independent Financial Adviser, they will advise you of any costs.
They are far from alone. There are about 1. There have been numerous warnings about interest-only mortgages in recent years. With this type of mortgage, the borrower agrees to pay off the interest each month but makes no capital repayments. Borrowers are expected to make sure they have an investment plan in place — usually an endowment policy — to pay off the debt at the end of the term. Some people face a shortfall because their investment has underperformed, while others never set anything up.
Yorkshire Building Society recently introduced a residential mortgage rate of 0. Tomorrow, Santander are also introducing a new range of buy-to-let remortgage rates, starting at 2. Five year fixed buy-to-let remortgage rates start from 2. Looking to switch or start a new policy? Run a quick landlord insurance quote today. Buy-to-let owners also benefit Tomorrow, Santander are also introducing a new range of buy-to-let remortgage rates, starting at 2. Start your quote. Join over , subscribers to our monthly newsletter Keep up to date with the breaking news, guides and tips impacting your business or rental. Resources Microsites Small business guides Work-life balance. Archive
As the interest-only mortgage crisis hits, here’s how you can avoid the heartache
You can also complete our mortgage questionnaire for a more accurate initial response. Please note, by submitting this information you have given your agreement to receive verbal contact from us to discuss your mortgage requirements. Santander for Intermediaries has opened up its existing customer product transfer system to allow brokers to arrange new mortgage rates for clients. The bank has beeen writing to some existing customers up to six months before their rate expires offering new terms — even if they had early repayment charges. Aaron Strutt, product director at Trinity Financial, says: Santander will not typically ask customers to demonstrate their income for affordability assessments again, and there will not be any valuation or legal fees.
Latest mortgage rates
Remortgage options for existing Santander borrowers after standard variable rate rise
Personal banking for island residents and mortgages for Isle of Man residents. Corporate banking services primarily for companies domiciled in the Channel Islands and Isle of Man. Interest rate increases on Fixed and Notice accounts. Read More. Ring-fencing and Santander International. Changes to our interest rates. We have reviewed and made changes to our variable interest rates for Sterling and Euro accounts. Every Child Our Future initiative. Full details of the Scheme and banking groups covered are available on the States of Jersey website www.
Brokers discovered the letters had gone out when loyal customers contacted them querying why they were being encouraged to take up a new product.
Santander releases a 80% LTV mortgage deal at just %.
The arrangement has the potential to help existing Santander mortgage customers that are reaching the end of their mortgage term who may have a shortfall in repaying the capital owing on their interest only mortgage. The service will also be available to existing Santander mortgage customers who are thinking about releasing equity from their homes to help fund their retirement. Equity release can be the ideal solution for many people who are not ready to downsize and also want more financial flexibility in later-life. However, specialist advice in this area is vital to ensure consistently good outcomes for customers. The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions. As at 30 June , we had over nine million customers in the UK for our life assurance, pensions, investments and general insurance plans. Press releases. Email alerts. The agreement with Santander aims to bring greater certainty to borrowers with endowment policy shortfalls or those who would rather not sell and downsize. For more information please contact: UK Consumer site Consumer. Other sites Adviser centre General Insurance broker Investments Workplace benefits for advisers Mortgage club Workplace benefits for employers.
Published by Adam Williams on 23 January Last updated on 23 January The FoR will be set at 3. If a customer were to be on the rate today, for example, they would pay 3. Graham Sellar, head of mortgage business development at Santander, told Moneywise that customers had been left confused about whether their mortgage rates were going up or not. Those who took out a mortgage before 23 January will still revert to the SVR when their term finishes, but customers will have the option of transferring to the FoR free of charge. Mortgages offers made before 23 January, even if they complete after that date, will also continue to revert to the SVR. However, once a customer transfers to the follow-on rate they will not be able to transfer back to the SVR. The key part is that customers can choose either rate. But we would always suggest people seek advice from ourselves or a mortgage broker when their deal expires.
Finding the right mortgage is one of the biggest financial decisions you re likely to face, but what exactly is a mortgage and what should you be looking for to find the right mortgage? Firstly, you may ask yourself: A mortgage is essentially a loan from a bank specifically provided for the purchase of property. The reason it s called a mortgage and not a loan is due to a subtle yet significant difference between the two. So what is the difference between a mortgage and a loan? If you miss a payment or have trouble repaying a loan, the provider of the loan will chase you for it in the usual way that they might for most other credit product types. How a mortgage works is that if you were behind on your mortgage repayments and were close to being unable to afford it, the bank could take repossess your home. Essentially a loan works as a relationship between the lender and the borrower, i. If something goes wrong with your ability to pay back any loan, you are responsible. However, with a mortgage, your personal property is tied to that relationship, so if something went wrong, the bank would be able to simply repossess the property you used the mortgage to buy. You only fully and independently own the property until the mortgage is paid in full. This protects the lender, be it a bank or building society, in the event that you are unable to repay them.VIDEO ON THEME: Santander Bank - Unlawful repossession order allowed