Posted on 20 October 2010 by ROBERT BIRD
A few years ago our fixed rate morrtgage with Abbey now Santander finished and we didn't do anything about it at the time. Then we went behind on our mortgage and we are still a month behind to this day, but when my fixed rate finished they never lowered the mortgage to what it should have been. By the time I contacted them I was behind on payments and they said I would have to be be up to date with the mortgage for 3 months before they would consider changing my rate, can they do this?
Santander are able to insist on your mortgage payments being up to date before changing your mortgage rate and you will find their authority for this in your original mortgage terms and conditions.
You say that for some period when your Fixed rate ended you were overpaying and I wonder by how much? Have you asked Santander how much you would need to pay to bring your account up to date? If you have previously overpaid it may be that the amount required is less than your normal monthly payment.
Just looking at alternative options, I think you will find that Santander's offer to transfer you after 3 months is a fair one. In the current mortgage market it is likely that you would have to bring your account up to date and maintain it that way for at least 6 months before another Lender would consider a remortgage application. There will be Lenders willing to consider a remortgage before then, but the terms and rates probably mean you would be better off staying on your current rate of 4.24%.
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