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Odysseus

Santander Rate Rise

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Haven't seen this posted here yet. I found it reported on the Hargreaves Lansdowne's website. It is apparently from yesterday but can't find a link to the Times article.

If true, this could be the start of death by thousand cuts for the overborrowed.

Thursday newspaper round-up: Greece, Gold miners, S.Africa

Britain's second largest lender has dealt a blow to government plans to keep borrowing costs low by raising a key mortgage rate. Up to half a million homeowners with Santander are set to see their repayments jump by an average of £300 a year from October. The bank blamed higher costs for the decision but the move is sure to irritate ministers as they desperately seek plans to boost the flagging economy. The increase comes only a month after the Treasury and Bank of England sought to boost lending and lower borrowing costs by offering banks £80bn of cheap funding. Justin Urquhart Stewart, of Seven Investment Management, the wealth manager, said: "Santander's decision flies straight in the wind of what the Government and the Bank of England are trying to achieve with the Funding for Lending Scheme, which is intended to lower borrowing costs and make it easier to get credit," The Times reports.

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To be honest, if I had a mortgage with Santander Id be more worried about Santander going bust rather than rates increasing.

Santnader - the bank hled together with paper and spit and a very accomodating regulator.

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I took some savings out of Santander back in March/April time - they made me jump through all sorts of hoops to get my money out. Was a long and time consuming process. Took at least an hour, made me feel uncomfortable by leaving me stand at one of their cashier's windows. At first they tried all ways to send me a cheque in the post rather than give me one there and then.

I left feeling stressed and ended up in the pub down the road for a pint of cider afterwards because I felt I was going to explode and needed something to make me relax. I don't drink during the day but had to make an exception this time.

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Britain's second largest lender has dealt a blow to government plans to keep borrowing costs low by raising a key mortgage rate. Up to half a million homeowners with Santander are set to see their repayments jump by an average of £300 a year from October. The bank blamed higher costs for the decision but the move is sure to irritate ministers as they desperately seek plans to boost the flagging economy. The increase comes only a month after the Treasury and Bank of England sought to boost lending and lower borrowing costs by offering banks £80bn of cheap funding. Justin Urquhart Stewart, of Seven Investment Management, the wealth manager, said: "Santander's decision flies straight in the wind of what the Government and the Bank of England are trying to achieve with the Funding for Lending Scheme, which is intended to lower borrowing costs and make it easier to get credit," The Times reports.

I'm confused - FFL for mortgages was ended in January wasn't it?

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I'm confused - FFL for mortgages was ended in January wasn't it?

Yes - the story is from 2012 - don't know how it's got reprinted.

Britain’s second largest lender has dealt a blow to government plans to keep borrowing costs low by raising a key mortgage rate. Up to half a million homeowners with Santander are set to see their repayments jump by an average of £300 a year from October. The bank blamed higher costs for the

August 23 2012 12:01 AM
Edited by oldsport

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To be honest, if I had a mortgage with Santander Id be more worried about Santander going bust rather than rates increasing.

Santnader - the bank hled together with paper and spit and a very accomodating regulator.

I had a quick look at their saving rates before realising this story was so old. Then their "How much can I borrow" mortgage calculator. They seem to do 5x joint incomes e.g. 2 x £30k = £300k. If I add 2 x £5k overtime it's £325k (so + 2.5x annual overtime) or instead 2 x £5k child benefit it's £350k (so 5x annual child benefit). Add both those and it's £375k. Child benefit and overtime aren't guaranteed to last. £375k is 6.25x joint work income or 12.5x main income. No wonder house prices are so high if people are prepared to borrow so much.

http://www.santander-products.co.uk/calculator/mortgages/borrow

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I was living overseas when my bank got taken over by Santander. No problems - they carried on sending my statements, and then I moved again within the same country. I had a personal and business account with them. They changed the personal one over to the new address, but for the business one, I was told I could not have a UK account whilst living in another European country. Of course I protested their fuzzy logic on many grounds, and many of the bank staff couldn't understand why I was being forced to close my account, but what happened is a manager wrongly decided I couldn't have this account. The staff were then forced to defend their managers position regardless of what they thought personally. Some of the staff were giving all sorts of pathetic excuses on the many occasions I called, including one chap telling me he'd never heard of someone having a UK bank account whilst living overseas, and it was simply impossible to have one! In the end after many months and several letters I got an apology, the manager was reprimanded, and I was paid compensation. I never liked my bank before, but I hate Santander even more.

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