Hundreds of thousands of Santander mortgage customers will be hit with a hefty rate hike – and the threat of much worse to come.

The Spanish-owned bank announced it would increase its standard variable rate (SVR) from 4.24% to 4.74% on October 3.

Someone with a £150,000 mortgage would see their payments rocket by £516 over the next year.

Santander is also changing its rules to allow it to increase its SVR even more.

The firm will whack up its “SVR cap margin” – the maximum amount above the Bank of England’s base rate it can charge – from 3.75% to 4.99% from September 24.

It will mean Santander has the power to increase its SVR to 5.49%. If it does, someone with a £150,000 ­mortgage could see their monthly payment leap by £110 a month.

There is now a fear other banks will follow suit. A wave of lenders, including Halifax, Clydesdale and Yorkshire Banks, and the Co-operative, increased their SVR earlier this year.

WHY USE NEIL SOUNDY FINANCIAL SERVICES FOR YOUR REMORTGAGE ADVICE IN CARDIFF?

The vast majority of mortgage brokers and advisers still restrict their advice to mortgages that pay them commission.

What makes us different is that we give expert impartial on commission and non-commission paying mortgages. This means we will give you advice on the mortgage market.

View the video on our homepage that explains how we can offer at least twice the choice of mortgages compared to a standard mortgage broker.

How Much Will It Cost Me For Your Advice?

A fee of £495 is payable on completion of the mortgage and Neil Soundy Financial Services Ltd will keep the commission received from the lender for arranging the mortgage.

Neil Soundy Financial Services Ltd is an appointed representative of HL Partnership Ltd which is authorised and regulated by the Financial Services Authority.

The Financial Conduct Authority does not regulate some forms of buy-to-lets.

We do not give or imply legal or taxation advice. We recommend you contact a solicitor or accountant for advice in these areas.

Contact us today for a free no obligation initial discussion or meeting 

Think carefully before securing other debts against your home/property. Your home/property may be repossessed if you do not keep up repayments on your mortgage.

Useful link : https://www.moneyadviceservice.org.uk/en/articles/choosing-a-mortgage-shop-around-or-get-advice

This is a very interesting article by The Telegraph, reviewing the current position of the mortgage market and the changing lending criteria. What is does not cover is the return of the 95% mortgage.

Why use Neil Soundy Financial for advice on your mortgage in Cardiff?

We will give you expert impartial advice on the mortgage market.

Book a free no obligation one hour meeting.

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/9466305/First-time-buyers-hit-by-mortgage-apartheid.html

https://www.moneyadviceservice.org.uk/en/articles/choosing-a-mortgage-shop-around-or-get-advice

How Much Will It Cost Me For Your Advice?

A fee of £495 is payable on completion of the mortgage and Neil Soundy Financial Services Ltd will keep the commission received from the lender for arranging the mortgage.

Neil Soundy Financial Services Ltd is an appointed representative of HL Partnership Ltd which is authorised and regulated by the Financial Services Authority.

The Financial Conduct Authority does not regulate some forms of buy-to-lets.

We do not give or imply legal or taxation advice. We recommend you contact a solicitor or accountant for advice in these areas.

Think carefully before securing other debts against your home/property. Your home/property may be repossessed if you do not keep up repayments on your mortgage.

I was pleased to make a mortgage presentation to the Cardiff Landlords Forum which was attended by over 50 landlords and staff from Cardiff Council. I covered three areas.

HMO mortgage lending and lenders. (Paragon/ Leeds / Monmouthshire / Kent Reliance / TMW / BM Solutions).

Santander’s competitive follow on Buy to Let Rate @ 4.24%. Strict underwriting criteria.

Converting your existing residential mortgage to an offset mortgage. You can then use this as an additional source of finance and have your rental income paid into an offset savings account to reduce your residential mortgage term.

A question was raised about maximum mortgage term. A helpful lender is The Mortgage Works as they will lend to age 90. They also have the benefit of no minimum income requirements and no income needs to be stated on the mortgage application.

Why use Neil Soundy Financial for advice on your mortgage in Cardiff?

We will give you expert impartial advice on the mortgage market.

Useful link

https://www.moneyadviceservice.org.uk/en/articles/choosing-a-mortgage-shop-around-or-get-advice

How Much Will It Cost Me For Your Advice?

A fee of £495 is payable on completion of the mortgage and Neil Soundy Financial Services Ltd will keep the commission received from the lender for arranging the mortgage.

Neil Soundy Financial Services Ltd is an appointed representative of HL Partnership Ltd which is authorised and regulated by the Financial Services Authority.

The Financial Conduct Authority does not regulate some forms of buy-to-lets.

We do not give or imply legal or taxation advice. We recommend you contact a solicitor or accountant for advice in these areas.

Think carefully before securing other debts against your home/property. Your home/property may be repossessed if you do not keep up repayments on your mortgage.

Updated 10/07/2012

Send us an enquiry now to see how we can help you:

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We can discuss your current situation and the options available to you before arranging a free no-obligation meeting.

How Much Will It Cost Me For Your Advice?

A fee of £495 is payable on completion of the mortgage and Neil Soundy Financial Services Ltd will keep the commission received from the lender for arranging the mortgage.

Neil Soundy Financial Services Ltd is an appointed representative of HL Partnership Ltd which is authorised and regulated by the Financial Services Authority.

The Financial Conduct Authority does not regulate some forms of buy-to-lets.

We do not give or imply legal or taxation advice. We recommend you contact a solicitor or accountant for advice in these areas.

Think carefully before securing other debts against your home/property. Your home/property may be repossessed if you do not keep up repayments on your mortgage.

When most advisers research But to Let mortgages, there concentrate on the initial rate and arrangement fee charged by the lender. We believe that the follow on rate charged when your initial deal expires is equally as important. This is especially so in Buy to Let mortgages as the high arrangement fees will normally make remortgaging to a new lender poor value.  A fee of 2.5% of your borrowing seems standard these days.

An attractive follow on rate is offered by Abbey/Santander currently 4.24% variable.

Listed below are the current standard variable rates offered by other Buy to Let providers.

BM Solutions   4.84% / Kent Reliance  6.58% / Leeds  5.99% / The Mortgage Works 4.99%

Nottingham B/S  6.54% / Platform  5.00% / Accord  5.99% / Coventry 4.74% (27/06/2012)

Why use Neil Soundy Financial for advice on your mortgage in Cardiff?

We will give you expert impartial advice on the mortgage market.

How Much Will It Cost Me For Your Advice?

A fee of £495 is payable on completion of the mortgage and Neil Soundy Financial Services Ltd will keep the commission received from the lender for arranging the mortgage.

Neil Soundy Financial Services Ltd is an appointed representative of HL Partnership Ltd which is authorised and regulated by the Financial Services Authority.

The Financial Conduct Authority does not regulate some forms of buy-to-lets.

We do not give or imply legal or taxation advice. We recommend you contact a solicitor or accountant for advice in these areas.

Think carefully before securing other debts against your home/property. Your home/property may be repossessed if you do not keep up repayments on your mortgage.

Useful link