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If you’re looking to remortgage, whether to switch to a better deal or to borrow more money for home improvements, Santander may be a good option to consider. In this guide, we explore the benefits, process, and considerations when choosing Santander as your lender.
There are many benefits to switching to Santander, one of the UK’s leading lenders. Here are several advantages:
- Competitive Rates: Santander offers competitive rates across a wide array of product choices, including fixed and variable schemes.
- Diverse Product Options: They cater to various needs, such as shared ownership, first homes scheme, and right to buy.
- Flexible Criteria: Santander is accommodating for different employment types, including employed, self-employed, and zero-hour contracts. They also consider overtime and bonuses for affordability.
- Streamlined Process: Their underwriting process is quick and requires minimal documentation.-
- Free Legal Services: Santander usually offers free legal services for remortgages.
What is the Santander remortgage process?
The Santander remortgage process involves several steps:
- Book an Appointment: Schedule a meeting with a broker or mortgage advisor.
- Gather Documents: Collect all necessary documents, such as proof of income, identification, and bank statements.
- Explore Mortgage Options: Review and compare different mortgage options available.
- Run AIP/Credit Check: Obtain an Agreement in Principle (AIP) and run a credit check.
- Apply for Full Mortgage: Submit a full mortgage application.
- Underwriting & Mortgage Valuation: Santander will underwrite your application and carry out a mortgage valuation.
- Instruct Solicitors: Choose solicitors for the legal work. You can use Santander’s free legal service or hire independent solicitors.
- Mortgage Offer Issued: Santander usually issues a mortgage offer within 1-3 weeks of the application.
- Solicitors Carry Out Legal Work: Your solicitors will complete the necessary legal work to enable the switch to Santander, repay the previous mortgage, switch to the new lender, and release any additional funds you are borrowing to you.
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The types or remortgage
Remortgaging to Santander can take several forms:
- Like-for-Like Borrowing: This involves borrowing the same amount on the same terms as your current mortgage.
- Additional Borrowing: You can borrow extra funds for purposes such as debt consolidation or home improvements. You may also be able to remortgage to enable you to buy out more or all of the shared equity or shared ownership element if applicable. Santander usually allows borrowing up to 85% of the property valuation.
- Reducing Your Mortgage: If you wish to overpay, you can reduce your mortgage balance. This can result in either lower monthly payments or a shorter mortgage term.
Is a Santander remortgage right for you?
Is remortgaging the right thing to do? Consider the following:
- Comparison with Other Lenders: Are there more suitable deals with other lenders? Research and compare options to find the best rates and terms.
- Eligibility Criteria: Do you meet the criteria for remortgaging with the new lender? Ensure you understand their requirements before applying.
- Current Lender: Is staying with your current lender better and easier? Sometimes, your current lender may offer competitive rates and switching might not be necessary.
- Exit Fees: Are you fixed in with your current lender? Moving might incur exit fees that could make the new deal less attractive. Calculate the costs to ensure it’s worth remortgaging.
How long does a Santander remortgage take?
The timescales for remortgaging with Santander typically follow these steps:
- Book an Appointment: This can take a few days to arrange with a broker or mortgage advisor
- Research Options: Spend a few days exploring different mortgage options
- Application and Valuation: After submitting your application, the valuation usually occurs within 7-10 days.
- Underwriting: The underwriting process also typically takes 7-10 days from the application.
- Instruct Solicitors: Once the mortgage offer is issued, instruct solicitors to handle the legal work.
- Solicitors to Completion: The solicitors’ process generally takes 4-8 weeks to complete, but it can take longer if there are complications such as a transfer of equity or help to buy.
Overall, you should ideally allow at least 2 months for the entire remortgaging process, as there can be delays with solicitors and paperwork.
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Santander remortgage costs
The cost of remortgaging to Santander is usually minimal. Often, they offer free legal services and valuations. The mortgage products themselves may have fees, but in most instances, these can be added to the loan.
Considerations when remortgaging
When you remortgage to Santander or any lender, be aware of any exit fees from your current lender. You can usually remortgage and reserve a rate for 6 months. For example, if your fixed rate ends in October, you may be able to start the process in May to avoid exit fees by waiting until your existing deal ends. Additionally, allow at least 2 months before your existing deal ends to avoid reverting to the lender’s standard variable rate.
Santander remortgage affordability
Santander usually offers income multiples of 4.5 to 5 times gross income, although this can vary significantly. They offer increased income multiples up to 5.5 times when remortgaging to them without borrowing additionally.
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When is the right time to remortgage?
There are several factors to consider, with the most common being the approach of the end of your fixed-rate product. You can reserve a rate up to 6 months in advance, allowing you to protect against potential rate increases while retaining the flexibility to change if rates decrease.
It may also be worth remortgaging before your current deal ends, despite potentially paying an exit fee, if the new deal is still advantageous after factoring in the fee or if you need to release funds for an urgent purpose. However, it is worth checking if your current lender can assist first.
How can Strive help?
Working with a broker like Strive can help with a Santander remortgage by comparing the market to find the best deals, advising you on your options, and handling the paperwork. They can also assist in finding solicitors, submit the application on your behalf, and provide support throughout the entire process.
FAQ’S
-What are Santander remortgage rates?
Santander remortgage rates vary depending on the product, loan-to-value ratio, and your financial profile. It’s best to check their current rates on their website or consult with a broker for the most accurate and personalised information.
I have been declined a Santander remortgage, what can I do?
If your remortgage application has been declined, review the reasons provided by Santander. You may need to improve your credit score, reduce your debt, or increase your income. Consider seeking advice from a mortgage broker who can help you understand your options and potentially find alternative lenders.
-Do Santander allow mortgages to consolidate debt?
Yes, Santander does allow remortgages to consolidate debt. They will assess your financial situation to ensure you can afford the repayments.
-Do Santander allow remortgages for home improvements?
Yes, Santander allows remortgages for home improvements. You can borrow additional funds based on your property’s value and your financial circumstances.
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