Take out a Santander remortgage to avoid shortfalls in interest only mortgages
A Santander remortgage may be a consideration for a large number of borrowers who have interest-only mortgages at present.
The Financial Services Authority are predicting that a great many borrowers mainly aged around their late fifties who have interest-only mortgages but do have not the means to repay the full amount outstanding on their property may not be able to ever fully own their property.
Interest only mortgages are popular for many due to the lower repayments as each mortgage repayment is used to pay off the interest only and does not repay any of the outstanding capital.
Borrowers usually take out a repayment vehicle such as an ISA or pension plan to repay the mortgage at the end of its term and some of these are also tax efficient. Problems occur for borrowers if the ISA or plan do not reach the expected target to repay the full amount of capital and may result in no means to pay off the mortgage at the end of its term.
Many mortgage advisers are encouraging both borrowers and lenders to regularly check these funds to ensure there is not a shortfall and if there is, to remortgage to prevent future problems. When you take out a Santander remortgage and a fixed two year deal the initial rate is 3.19 per cent and then it changes to the SVR (standard variable rate) currently at 4.24 per cent for the rest of the mortgage term.
This remortgage is applicable for those requiring maximum LTV (loan to value) of 75 per cent and a booking fee of £995 applies although it does include free standard valuation and standard legal fees paid also.
