Remortgaging From Santander

Why Do People Remortgage Away From Santander?

Santander mortgage customers frequently choose to move to a different lender when their initial deal period ends. The most common reasons include:

• SVR reversion — Once your Santander fixed or tracker deal expires, your mortgage reverts to the Santander SVR of around 7.25%. While this is slightly lower than some high street rivals, it is still considerably higher than the best available remortgage rates.
• Dissatisfaction with service — Some borrowers experience difficulties with Santander's customer service, whether through branch closures, call centre wait times, or online platform issues. A remortgage is an opportunity to move to a lender with better service standards.
• More competitive deals elsewhere — The UK mortgage market is highly competitive, with challenger banks, building societies, and specialist lenders frequently undercutting the rates offered by large high street banks like Santander.
• Desire for different product features — Santander's mortgage range may not include features that suit your current needs, such as higher overpayment allowances, portable mortgages, or offset facilities that match those offered by other lenders.

Remortgaging is a well-established process and is something that millions of UK homeowners do as a routine part of managing their finances.

Understanding the Santander SVR and Current Rates

The Santander standard variable rate currently sits at around 7.25%. This is the rate you will pay if your initial mortgage deal has ended and you have not arranged a new product, either through a Santander product transfer or by remortgaging to a different lender.

Here is an example of how the Santander SVR compares to competitive market rates on a £180,000 repayment mortgage over 25 years:

• At 7.25% (Santander SVR) — monthly repayments of approximately £1,309
• At 4.50% (competitive fixed rate) — monthly repayments of approximately £1,000
• Potential monthly saving — around £309 per month, or over £3,700 per year

Santander does offer product transfers to existing customers, allowing you to switch to a new deal without the need for a full remortgage application. However, product transfer rates are not always the best available. It is essential to compare Santander's internal rates against what the wider market is offering before committing.

Bear in mind that Santander's SVR can change at any time, as it is set at the lender's discretion. This lack of certainty is another reason why many borrowers prefer to lock into a fixed rate deal, either with Santander or with a new lender.

How to Remortgage Away From Santander

The process of remortgaging from Santander is straightforward and follows the same steps as switching from any other lender:

• Review your existing deal — Check your Santander mortgage statement or log into online banking to confirm your outstanding balance, current rate, any early repayment charges, and the date your deal ends. You can also call Santander's mortgage team on their dedicated line for existing customers.
• Assess your property value — Get an idea of your property's current market value using online tools or a local estate agent's opinion. This determines your loan-to-value ratio, which is a key factor in the rates you can access.
• Speak to a broker — A whole-of-market mortgage broker can compare deals from all available lenders and recommend the most suitable option for your circumstances. They will also advise on whether a Santander product transfer might be more cost-effective once fees are taken into account.
• Submit your application — The new lender will assess your application, carry out a credit check, and arrange a valuation of your property. Many remortgage products include a free valuation and free legal services.
• Complete the switch — Solicitors handle the legal transfer, paying off your Santander mortgage and setting up the new one. This usually takes four to eight weeks.

You can begin the process up to six months before your Santander deal expires, giving you plenty of time to find the right deal without falling onto the SVR.

Key Considerations Before Leaving Santander

Before finalising your decision to remortgage away from Santander, make sure you have considered the following points:

• Early repayment charges — If you are still within your initial deal period, Santander will charge an ERC for redeeming your mortgage early. This charge is stated in your original mortgage offer and typically decreases each year as you approach the end of your deal.
• Exit fees — Santander may charge a mortgage exit administration fee when you close your account. This is a separate charge from any early repayment charge and is usually a modest fixed amount.
• Santander 1|2|3 benefits — If you hold a Santander 1|2|3 Current Account and receive cashback on your mortgage payments, this benefit will end when you remortgage away. Factor this into your overall savings calculation.
• Cashback clawback — If Santander offered you cashback when you took out your mortgage and you are remortgaging within a specified period, check whether any of that cashback is subject to clawback provisions.
• Portable mortgage — If you are planning to move home in the near future, check whether your current Santander deal is portable. Porting your mortgage could avoid early repayment charges if you time your move correctly.

Gathering this information upfront will ensure there are no surprises during the remortgage process and help you make an accurate comparison of the true cost of switching.

How a Mortgage Broker Can Help You Leave Santander

Using a mortgage broker when remortgaging from Santander offers several significant advantages over approaching lenders directly:

• Market-wide comparison — A broker can access deals from across the entire UK mortgage market, including exclusive rates that are only available through intermediaries. This is particularly important because Santander's own product transfer rates may not be the cheapest option.
• Cost-benefit analysis — A good broker will calculate the total cost of remortgaging, including any Santander ERCs, exit fees, and new lender arrangement fees, and compare this against the savings from a lower rate. This ensures the switch genuinely makes financial sense.
• Tailored advice — If your financial circumstances have changed since you took out your Santander mortgage, perhaps due to a change in employment, additional debts, or a shift in income, a broker can identify lenders whose criteria best fit your current situation.
• Handling the paperwork — From the initial application through to completion, a broker manages the process, liaising with your new lender, the solicitors, and Santander on your behalf.

Most remortgage brokers are paid through a commission by the new lender, meaning you receive professional advice without any direct charge. Always confirm how your broker is remunerated before engaging their services.