Since the beginning of the pandemic in early 2020, a lot of mortgage lenders changed their stances on various parts of their criteria to both protect themselves from any potential negative effects of the lockdowns but also to help loyal existing mortgage customers who may find themselves struggling. The Santander mortgage early repayment charge was one of these.
To support existing customers moving home during the pandemic, where redemption of the existing mortgage and purchase of the new property was non-simultaneous, the Santander early repayment charge was amended. They temporarily extended the early repayment charge refund window which meant people were able to claim back early repayment charges for longer than they previously could.
If you have a Santander mortgage and need to discuss anything with an expert mortgage advisor, call our team today or drop us a messages for a free initial consultation. We are here to help.
What Are The Changes Being Made To The Santander Early Repayment Charge?
Today Santander have released a statement to say that with effect from the 1st of January 2022 the Santander early repayment charge waived in 2020 and the ERC refund window for non-simultaneous porting will change as follows:
1) The Santander early mortgage repayment charge on standard purchase cases (non-new build) will revert back to three months (currently five months) in total.
2) The Santander mortgage early repayment fee on new build purchase cases will revert back to six months (currently 8 months) in total.
They have also made is clear to remember that Flexible Offset porting has always been excluded from this policy and will continue to be excluded. If you are porting a Flexible Offset mortgage, redemption and completion must be on the same day (simultaneous).
What Do Mortgage Professionals Say About The Santander ERC?
Jade Pinkerton, senior mortgage and protection advisor at Oportfolio Mortgages had this to say:
“Now that we are finally seeing the end of the COVID-19 pandemic and the limitations it has enforced on us, it is actually very encouraging to see lenders going back to normal practice such as the Santander early loan repayment rules. Although having longer to claim your Santander early repayment charge refund may seem attractive, the 3 – 6 months that they now allow is plenty of time. The fact that they are going back to their previous rules shows that the lender now has more confidence in its customer’s financial stability and the mortgage and property market as a whole. Santander loan early repayment has always been quite lenient, especially with new build purchases. If you speak with a specialist mortgage advisor such as myself, you won’t need to worry about the repayment charge at all.”
If you or someone you know has a Santander mortgage and are concerned about these new changes, feel free to give us a call to speak to a member of our friendly team. We can help with any kind of mortgage with any lender, call our advisors today on 02088771169 or send us an email at [email protected] if you need to speak to a mortgage professional. We are here to help.