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Mortgages frequently asked questions

Answers to your questions

Answers to your questions about mortgages

Get an instant answer to your question by viewing frequently asked questions about mortgages.

New to Santander - applying for a mortgage

  • When you're buying a home we need you to have a deposit of at least 5% of the value of your property, meaning that you generally have to find a lump sum. Say you needed a 5% deposit on a home costing £150,000 you’d have to find a £7,500 deposit before you could consider buying.

  • Equity is the difference between the value of your home and your mortgage amount. So if your home is worth £200,000 and your outstanding mortgage amount is £180,000, you have £20,000 equity in your home.

     

    When you know how much equity you have you can also work out your loan to value (LTV). This is the amount of your mortgage as a percentage of the value of your home. So in the above example, your LTV would be 90%.

  • Your last three months' payslips (or four weeks if paid weekly) to show your income. If you're self employed you can use SA302s plus Tax Year Overviews (TYOs) covering three years, or an accountant's certificate or three years’ accounts. If you want to use other income to support your application there may be other documents you need, for example your P60 if you want to use annual bonus or your most recent HMRC letter if you want to include child benefit.

     

    Your last three months’ bank statements to show your outgoings, such as food and household bills. Our online budget planner will help you work out what you spend each month.

     

    You’ll need details of any outstanding financial commitments such as loans and credit cards. Plus details of insurance policies e.g. home insurance, mortgage payment protection, life or critical illness cover, and any investment/endowment details you wish to use to support your mortgage.

     

    You'll need to have your address details for the last three years. And finally details about your property.

     

    If you’re applying in branch you’ll also need ID such as your driving licence or passport.
     

  • We'll be able to give you an idea of how much you could borrow. You can also find out what type of mortgage you'd like and how much it's likely to cost. We won't be able to make you a formal offer until you've gone through a full mortgage application and we've carried out a valuation on the home you want to buy.

  • We are part of the following schemes:

    • Help to Buy: ISA

    • Shared Ownership

    • Help to Buy: equity loan

    • London Help to Buy

    • Forces Help to Buy
       

    Find out more

  • You only pay back the interest with each monthly payment so at the end of your mortgage term you still owe the amount you borrowed when you took out the mortgage.

    It's important to have a suitable plan to repay your interest only mortgage when it ends. Customers often have a savings or investment plan, make overpayments, or may sell and downsize their home or even sell other assets. If you have an interest only mortgage, it's important to check the suitability of your repayment plan regularly and call us if you feel your plan is not on track.

  • With this option you're guaranteed to pay off your entire mortgage by the end of the term, provided you don't miss any payments.
    The amount that you pay each month is made up of capital and interest and is calculated to repay all of your mortgage by the end of the term.

  • Our tariff of mortgage charges shows our current charges. We send a copy of our current tariff of mortgage charges each year with the annual mortgage statement.

     

    What is your account fee?
    The account fee is the fee for managing your mortgage account and also includes closing your mortgage account when your mortgage ends. It only has to be paid once during the life of your mortgage on your property. You can pay it on completion, or it can be deferred until the end of your mortgage. Please note the fee won’t increase throughout the life of your mortgage on your property.
     

  • We do not currently offer new Buy to Let mortgages through the branch or over the phone – however we do offer these through Independent Financial Advisers. If you have an existing Buy to Let mortgage and you have a query, please call us on 0800 917 5630. Lines are open 8am to 7pm Monday to Friday and 9am to 1pm Saturday.

  • The Mortgage Credit Directive (MCD) is new European legislation which must be implemented in the UK and across Europe by 21 March 2016 – we’ll be implementing the changes ahead of this date. Although the UK has a robust set of regulations, following the Mortgage Market Review in 2014, MCD is there to provide standardisation across the European Union.

     

    It will affect you if you’re buying your first home, moving home, remortgaging to us from another lender or taking out an additional loan with your existing lender.

     

    There are four key changes:

     

    1. European Standardised Information Sheet
    There is a new form of illustration which is called the European Standardised Information Sheet (ESIS). It will eventually replace the Key Facts Illustration (KFI) which is currently used for all mortgages and which is like a quotation for a specific mortgage deal.
    Whilst the format is different and information may be in different sections, the key points are still displayed in both the ESIS and KFI.
    From 21 March, lenders have the option of using the ESIS or keeping the KFI but with the additional MCD information - we’re continuing to use the KFI. All lenders must use the ESIS from March 2019.

     

    2. Annual Percentage Rate (APR)
    The APR allows you to compare the overall cost of mortgage deals from all lenders. For those lenders using the ESIS this will be called the Annual Percentage Rate of Charge (APRC). The APR and APRC costs can still be compared across lenders when comparing a KFI and the ESIS.

     

    MCD also requires us to provide a second APR. This needs to be provided for mortgages which have a variable interest rate at some point during the mortgage term e.g. fixed rate mortgage changing to our Standard Variable Rate or a tracker rate mortgage. This second APR shows the cost of a mortgage should interest rates rise to a 20 year ‘historic high’ – it is purely for illustrative purposes.

     

    3. Reflection period and binding offer
    We need to provide you with a ‘reflection period’ lasting at least seven days. This is to give you a chance to review your mortgage offer, make comparisons and assess the implications of accepting it and taking out a mortgage. This reflection period will begin when we issue your mortgage offer.

     

    From 21 March, the mortgage offer you receive from a lender will be “binding” on the lender, meaning it cannot be withdrawn without there being a justifiable reason, for example:

     

    • a material change relating to your offer such as mortgage amount
    • where false and/or inaccurate information has been provided
    • if the Conveyancer is unable to confirm requirements such as a satisfactory certificate of title

     

    4. Foreign currency mortgages
    Although we only offer mortgages in pounds sterling, we do consider employed income and/or interest only repayment vehicles in a foreign currency. Where this is the case, the mortgage is classified as a foreign currency mortgage. With a foreign currency mortgage you need to be aware of the implications of exchange rate fluctuations. If the value of the foreign currency moves against you, it could become more difficult to afford your monthly mortgage payments and/or repay your interest only mortgage.

     

    Within the KFI we show the impact of a 20% adverse movement in the foreign exchange rate. Once your mortgage has completed, we'll monitor the exchange rate and if it moves against you by 20%, we'll write to let you know.

     

    If you have any questions please contact us.

Existing Santander mortgage customer - general queries

  • Order a redemption statement by calling or writing to us using the details below:

    Santander mortgages:
    Santander Mortgage and Loan Operations, Bridle Road, Bootle, L30 4GB
    Tel: 0800 917 5630. 8am to 7pm Monday to Friday and 9am to 1pm Saturday.

    Alliance & Leicester mortgages
    Santander, Image & Document Centre, Carlton Park, Narborough, LE19 0AL
    Tel: 0800 917 5630. 8am to 7pm Monday to Friday and 9am to 1pm Saturday.

  • If you have Online Banking, you can see your mortgage alongside any other accounts you hold. Some of the details you may be able to see include:

    • outstanding mortgage balance and term remaining

    • next monthly repayment

    • current product details, including the interest rate, when your deal ends and whether an early repayment charge applies

    • the last twelve months of payments, including any overpayments you've made.

    If you don't already have Online or Mobile Banking and have a mortgage with us and also a current account, savings account or credit card, sign up for Online and Mobile Banking today

    If you have a mortgage with us but not a current account, savings account or credit card you can still sign up for Online and Mobile Banking
     

  • We may be able to help you so please talk to us
    0800 023 4603 if you have a Santander mortgage. Or

    0800 731 7553 if you have an Alliance & Leicester mortgage.

    Lines are open 8.30am to 7pm Monday to Friday and 9am to 1.30pm Saturday.

     

    We’ll ask for your mortgage account number which can be found on your latest mortgage statement.

     

    Get free, independent advice
    It's free to talk to any of these organisations:

    The Money Advice Service
    Call 0300 500 5000 or visit the Money Advice Service site

    Citizen's Advice Bureau
    Call 0345 404 0506 or visit the Citizen's Advice Bureau site

    The National Debtline
    Call 0808 808 4000 or visit The National Debtline site

    The StepChange Debt Charity
    Call 0800 138 1111 (free from all mobiles) or visit the StepChange site 

  • Our Standard Variable Rate (SVR) is the rate that mortgage deals will automatically transfer to when the initial product period ends.

     

    SVR is a managed rate and not directly linked to the Bank of England base rate, so changes to base rate may not always result in a change to SVR. Other factors can also influence the rate we set.

     

    SVR is a variable rate so payments may move up or down.

     

    Find out more about our current Santander and Alliance & Leicester SVRs and how any change might affect your monthly mortgage payments.

  • This is where you only have a single loan active on your mortgage account. You could have more than one active loan on your mortgage if:

    • you've taken out an additional loan with us;

    • you've transferred a product and increased your overall mortgage when you moved house; or

    • you have more than one type of repayment method i.e. part of your loan is on repayment and part is on interest only.

    If you're unsure, your latest annual mortgage statement will show the number of active loans. Please ignore any loans with a £0.00 balance.
     

  • You can request this from our mortgage centre either by writing to us or contacting us by phone using the details below.

     

    You will need to pay a duplicate/interim statement fee for each statement you request. This can be paid in a branch by cash or cheque, by sending a cheque to the mortgage centre or you may be able to add it to your next Direct Debit by calling us.

     

    Please be aware duplicate statements can take up to 15 days to be issued and delivered.

     

    Santander mortgages:
    Santander Mortgage and Loan Operations, Bridle Road, Bootle, L30 4GB Tel: 0800 917 5630. 8am to 7pm Monday to Friday and 9am to 1pm Saturday.

     

    Alliance & Leicester mortgages
    Santander, Image & Document Centre, Carlton Park, Narborough, LE19 0AL Tel: 0800 917 5630. 8am to 7pm Monday to Friday and 9am to 1pm Saturday
     

Existing Santander mortgage customer - changing your mortgage deal

  • We can transfer you to a new deal in 14 days or less.

     

    If you accept a new deal with a rate that’s the same or lower than your current rate, or you’re on our Standard Variable Rate or a Lifetime Tracker product we’ll transfer you to your new deal straight away. If necessary, we’ll arrange for any early repayment charges to be waived.

     

    If you accept a new deal with a rate that’s higher than your current rate, your new rate will start when your current deal ends. If you’re on a short term tracker your new rate will start when your current deal ends, or the day before the completion deadline of the new product whichever is first.

     

    We'll always confirm your conversion date by email or text message.
     

  • If you have entered the account number shown on your latest mortgage statement and you were unable to sign in, unfortunately you can’t use the online service. However, we have Mortgage Advisers available to talk to you and if you would like to know the deals that are currently available then please call us on
    0800 068 6462.
     

  • You can request paperwork for more than one product, however, you can only accept one deal. We will transfer your mortgage to the deal you confirm your acceptance for.

  • If you have not yet confirmed your acceptance online, or you have not yet signed and returned the paperwork then you do not need to do anything. We suggest you destroy any paperwork and we can confirm your online Conversion Offer will automatically expire after the accept by deadline.

     

    If you've already confirmed your acceptance online, or you’ve signed and returned the paperwork to us, you have no right to cancel your deal.

     

    If there has been a change in circumstance which is outside of your control, we may be able to consider a cancellation if your new deal hasn’t started.  Please contact us on 0800 068 6462 to find out the status of your new deal.

  • The fixed and tracker rate mortgage deals in the Online Mortgage Transfer Service are the same as the deals available over the phone.

Existing Santander mortgage customer - interest only customers

  • You have an interest only mortgage if:

    • your mortgage is described as interest only on your paperwork and mortgage statement

    • your monthly payments do not pay off the capital (the money you've borrowed) on your mortgage.

    • you have an endowment, ISA or other repayment plan to pay off your mortgage.

  • We recommend checking your repayment plans are on track at least annually – and more often if possible. This means if your plans aren't as expected, you can act as early as possible to make sure you can still pay off your interest only mortgage at the end of the term.

    Remember to check:

    • the amount you will owe at the end of your mortgage – you can find this on your mortgage statement

    • the amount your repayment plans are likely to produce and whether this will cover the amount you'll owe

    If you want to speak to someone call us on 0800 012 1583. Lines are open Monday to Friday 9am to 7pm and Saturday 9am to 2pm.

  • We contact all our interest only customers on a regular basis to ask them to check if their repayment plans are on track, and to offer support making any new arrangements.  This is part of our commitment to being a responsible lender and to meet the guidance from one of the UK main financial regulators, the Financial Conduct Authority.

     

    If we’ve recently contacted you about your interest only mortgage, please call us or send us the form confirming your plans to repay your interest only mortgage when it ends.

Existing Santander mortgage customer - Flexible Offset mortgage customers

  • Overpayments
    You can make overpayments on your Flexible Offset mortgage at any time. Simply use Online Banking to change the payment amount or call us on 0800 917 5630 Lines are open 8am to 7pm Monday to Friday and 9am to 1pm Saturday.

     

    If you don’t yet have Online and Mobile Banking, and have a Santander current account, savings account or credit card as well as your mortgage, sign up here

     

    If you have a mortgage with us but no Santander current account, savings account or credit card, you can still sign up to view and manage your mortgage online. You’ll need your mortgage account number which you can find on your latest statement.

     

    Underpayments and payment holidays
    If you have the funds available in your savings pot, you can underpay and take payment holidays, giving you control of your payments. Simply use Online Banking to change the payment amount or call us on 0800 917 5630 Lines are open 8am to 7pm Monday to Friday and 9am to 1pm Saturday.

  • Available funds
    To access the available funds on your Flexible Offset mortgage simply use Online Banking. Please note, if you want to withdraw any available funds in the future, we may check that you’ll be able to afford it.

     

    If you don’t yet have Online and Mobile Banking, and have a Santander current account, savings account or credit card as well as your mortgage, sign up here

     

    If you have a mortgage with us but no Santander current account, savings account or credit card, you can still sign up to view and manage your mortgage online. You’ll need your mortgage account number which you can find on your latest statement. 

     

    Borrow more
    You can ask for a Credit Limit Review. The maximum loan to value (LTV) you can borrow is shown in your original Key Facts Illustration. Simply use Online Banking or call us on 0800 092 3881. Lines are open 9am to 7pm Monday to Friday and 9am to 2pm Saturdays.

  • If you decide you want to move home, you can apply to transfer your Flexible Offset mortgage can easily be transferred to your new home, so you can enjoy the same great rate, even if you need to borrow more.

    Simply arrange to speak to a Mortgage Adviser by calling 0800 092 3881. Lines are open 9am to 7pm Monday to Friday and 9am to 2pm Saturdays.

  • If you use Online Banking, you can see and manage your Flexible Offset mortgage online.

     

    If you don’t yet have Online and Mobile Banking, and have a Santander current account, savings account or credit card as well as your mortgage, sign up here

     

    If you have a mortgage with us but no Santander current account, savings account or credit card, you can still sign up to view and manage your mortgage online. You’ll need your mortgage account number which you can find on your latest statement.

Santander UK plc. Registered Office: 2 Triton Square, Regent's Place, London, NW1 3AN, United Kingdom. Registered Number 2294747. Registered in England and Wales. www.santander.co.uk. Telephone 0800 389 7000. Calls may be recorded or monitored. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our Financial Services Register number is 106054. You can check this on the Financial Services Register by visiting the FCA’s website www.fca.org.uk/register. Santander and the flame logo are registered trademarks.