Understanding Interest Rates

Fixed Rates

Tracker Rates

Flexible Offset Mortgage

Monthly Payments

Payments stay the same during the fixed rate period, no matter what happens to Bank of England interest rates, after which the rate   will  revert to our Standard Variable Rate (SVR)

Payments track above the Bank of England base rate for a set period of time, after which the rate will  revert to our Standard Variable Rate (SVR)

Payments track above the Bank of England base rate for the life of the mortgage.

Benefits

You can budget for a set payment every month during the fixed rate term. Payments are protected against interest rate rises.

The interest rate tracks above the Bank of England base rate for a set period of time, if the rate goes down your monthly payments will go down, but if the rate goes up your monthly payments will also go up.

The interest rate tracks above the Bank of England base rate for a set period of time, if the rate goes down your monthly payments will go down, but if the rate goes up your monthly payments will also go up.

Freedom - to overpay whenever you want to, so you pay less interest over the mortgage term.  You may also be able to use any surplus you've built up to take payment holidays at a later date.

Savings - offset your savings against your mortgage

Long term - you don't need to look for a new deal every few years

Extra borrowing - you may be able to borrow additional money at your current interest rate at a later date

Other considerations

Monthly payments will not change if the Bank Base Rate changes

The mortgage will revert to Santander' s Standard Variable Rate at the end of the product term unless you choose a new rate with us

If the Bank of England base rate increases so will your monthly payments. You need to be comfortable your budget will allow an increase in monthly mortgage payments.

The mortgage will revert to Santander' s Standard Variable Rate at the end of the product term unless you choose a new rate with us

If the Bank of  England base rate increases so will your monthly payments.  You need to be comfortable your budget will allow an increase in monthly mortgage payments

How long are deals available for

2, 3 and 5 years

2 and 3 years

The flexible offset rate lasts for the life of the mortgage

Early repayment charges

There is an   early repayment charge if you pay back your mortgage before the end of the fixed rate term

There is an   early repayment charge if you pay back your mortgage before the end of the tracker rate  term

No early repayment charge payable

Available to all customer groups?  i.e. first time buyer, moving home, remortgaging?

Yes

Yes

Yes

Overpayments

Up to 10% each calendar year of your outstanding mortgage balance as of 1^st January,  without incurring an early repayment charge

Unlimited

Benefit packages available on selected rates?

Most of our mortgage deals offer a Benefit Solution  package. This includes a free standard valuation (limited to property value of up to £2.5m).  Also if you remortgage to us we will arrange and pay for all standard legal fees or if you are moving home we will pay £250 cashback on completion. You only need to repay the paid legal fees or cash back if you repay your mortgage within the first two years

What are typical interest rates

Click here to view our interest rates