Should you get a mortgage from Santander?

£25.2 billionLent to home owners in 2017.

Santander is one of the UK’s largest mortgage lenders, responsible for 9.8% of all mortgage lending in 2017 - which is around £25 billion.1

Founded in 1857 in Santander, Spain, it serves more than 100 million customers in Europe, the UK, and Latin America.

Santander mortgage deals are available to a wide range of people, but they generally won’t lend to you if you have particularly bad credit.

See how they compare to other mortgage lenders:

Is Santander a good mortgage lender?

6,921Upheld complaints received by the financial regulator.

We looked at Santander’s customer complaints record between July and December 2017. During this period the Financial Conduct Authority (the financial regulator) received 6,921 officially upheld complaints from Santander mortgage customers.2 That’s around 0.6% of customers and is higher than the 0.4% average across major lenders.*

*This number of customers served by this lender isn’t publicly available so we’ve estimated this figure based on market share and average house price in the UK.

How long does a Santander mortgage application take?

17 daysAverage speed of Trussle customer’s mortgage application with Santander.

Between July 2017 and July 2018, the average speed that Santander processed a Trussle customer’s mortgage application was 17 days.* That’s slightly quicker than the 18-day average across all the major lenders we’ve submitted applications to.

Bear in mind that the speed of application will vary depending on your own personal circumstances and the lender’s present day-to-day performance. In some cases, applications can be approved by the lender within 24 hours, while some can take weeks or even months. This can also be impacted by the quality of application submitted, which is why you may want to consider using a mortgage broker. The average quoted speed therefore may not reflect your own experience.

*This number of customers served by this lender isn’t publicly available so we’ve estimated this figure based on market share and average house price in the UK.

How much could I afford to borrow from Santander?

5.5 xMaximum annual income.

Santander could lend up to a maximum of 5.5 times income before tax, depending on your circumstances.

These details were last updated on 13th July 2018.

Current mortgage rates from Santander

Lowest 2 year fixed rate


Initial rate:
1.89%
Annual Percentage Rate of Charge (APRC):
3.50%

Based on securing a mortgage of £136,200 over a 25 year term. Reverts to SVR after initial 25 month period, costing £689.78 per month for 275 months. Total amount payable is £204,384.75 including interest and fees. This deal was last updated on 17th July 2018.

Lowest 5 year fixed rate


Initial rate:
1.99%
Annual Percentage Rate of Charge (APRC):
3.20%

Based on securing a mortgage of £136,200 over a 25 year term. Reverts to SVR after initial 61 month period, costing £676.03 per month for 239 months. Total amount payable is £198,189.35 including interest and fees. This deal was last updated on 17th July 2018.

Current Standard Variable Rate


Standard Variable Rate (SVR):
3.75%

This rate was last updated on 17th July 2018.

Current mortgage deals from Santander

First-time buyer

Lowest true cost deal


Lowest initial period true cost deal:
£19,564.00
Monthly payment:
£782.16
Upfront fee:
£260.00
Initial rate:
2.09%
Standard Variable Rate (SVR):
3.75%
Annual Percentage Rate of Charge (APRC):
3.50%

Reverts to SVR after initial 25 month period, costing £921.72 per month for 275 months. Total amount payable is £273,471.75 including interest and fees. This deal was last updated on 12th July 2018.

Remortgage

Lowest true cost deal


Lowest initial period true cost deal:
£14,260.50
Monthly payment:
£570.02
Upfront fee:
£260.00
Initial rate:
1.89%
Standard Variable Rate (SVR):
3.75%
Annual Percentage Rate of Charge (APRC):
3.50%

Reverts to SVR after initial 25 month period, costing £689.78 per month for 275 months. Total amount payable is £208,323.25 including interest and fees. This deal was last updated on 16th July 2018.

Frequently asked questions about Santander mortgages

This information was last updated on 16th July 2018.

Is there a limit to the overpayments I can make on my Santander mortgage?


Santander allows you to make unlimited overpayments on all variable-rate mortgages. But there’s an overpayment limit of 10% per calendar year if you choose a fixed-rate mortgage.

This means you’ll only be able to pay 10% more than your regular payments without incurring an overpayment fee. And this 10% doesn’t carry over from one year to another, so you can’t save up your overpayments either.

There’s also a £500 minimum on overpayments, regardless of which rate you’re on.

When would my first mortgage payment to Santander take place?


Santander will get in touch with you once you’ve completed, letting you know when your first payment will be and how much you’ll have to pay.

You might find that your first mortgage payment is slightly higher than you were expecting. This is usually because of a gap between when you complete on your purchase and the end of the month, which can mean you’re paying more interest than usual.

Can my Santander mortgage offer expire?


Yes, Santander mortgage offers will expire if you don’t complete the purchase of your property within the agreed time.

How long your Santander mortgage offer lasts will vary depending on the terms of your deal. Generally, however, it will last between three and six months from when you receive the offer in writing. This will be after the bank has received the valuation of the property you wish to buy.

When will Santander release my mortgage funds?


Santander will usually release funds for your mortgage on your completion day — that is, the day you pick up the keys to the property. This is also when your mortgage deed will be lodged with the land registry.

You’ll set your completion day when you exchange on the property.

Will I be able to manage my Santander mortgage online?


Yes. Once you’ve signed up for online banking, you’ll be able to see your mortgage information online. This includes:

  • outstanding balance
  • remaining term
  • next monthly payment
  • interest rate
  • the previous year of payments (including any overpayment charges)

This will all be available to view alongside any other accounts you hold with Santander.

What happens when my fixed-rate period ends?


When your fixed rate period is over, you’ll automatically move over to Santander’s follow-on rate. This is a variable-rate mortgage which is directly linked to the current Bank of England (BoE) base rate. If the base rate goes up, your mortgage payments will increase. If the BoE drops the base rate, your monthly payments will go down.

That makes the follow-on rate a little different to Santander’s Standard Variable Rate (SVR), which isn’t directly tied to the BoE base rate.

Will I need life cover or critical illness cover with a Santander mortgage?


No, Santander doesn’t expect you to have life insurance or critical illness insurance to get a mortgage. They do, however, require you to have buildings insurance, which covers damage caused by the likes of fire, flooding, storms, and subsidence.

Santander also recommends you take out contents insurance. This covers the contents of your home, but isn’t technically a requirement.

Have Santander previously sold PPI?


Like many major mortgage providers, Santander sold Payment Protection Insurance — or PPI for short — alongside mortgages in the past. Changes to the rules governing how PPI is sold mean that you won’t be misled if you choose a Santander mortgage today, though.

PPI is designed to cover you in case of accident, unemployment, or sickness. It usually applies to credit cards, loans, and mortgages. If you think that Santander has previously mis-sold you PPI, you can follow their complaints procedure.