Santander has recently announced revisions to its mortgage switching policy, allowing customers the flexibility to modify or revoke a pre-arranged deal up to 14 days prior to its commencement. The updated policy, scheduled to be implemented from Tuesday 9 July, will specifically pertain to fixed-rate or short-term tracker rate clients.
Under the newly revised policy, patrons will now have the option to accept a fresh deal at an equivalent or lower rate to commence the day after their current agreement expires, or the day before the product completion deadline, depending on which comes first. The decision to revise the policy reflects the bank’s aspiration to furnish its existing mortgage clientele with more alternatives in the contemporary rate landscape.
In a communication addressed to intermediaries, Santander elucidated, “In the current rate environment, we want to afford all existing mortgage customers the flexibility to modify or revoke their pre-arranged deal up to 14 days before their new agreement commences.” While changes are being introduced for fixed-rate or short-term tracker clients, there are no adjustments for those transitioning to a higher rate or existing standard variable rate, Follow-on Rate, and lifetime tracker customers.
For clients currently situated on a fixed-rate or short-term tracker, should the new rate be equivalent or lower, they will transition to the new agreement the day after their current deal expires, or the day before the product completion deadline. The same process will apply if the new agreement is at a higher rate. Clients on the lender’s SVR, follow-on rate, or a lifetime tracker will transition to the new agreement as soon as the offer of acceptance is received.
In summary, Santander’s decision to revise its mortgage switching policy is aimed at providing patrons with greater flexibility and choices. The impending policy change, slated to take effect on Tuesday 9 July, is designed to accommodate the current rate landscape and grant clients the ability to modify or terminate their pre-arranged deal up to 14 days before the new agreement commences. With these modifications, Santander is taking steps to enhance customer satisfaction and adapt to the evolving requirements of its mortgage clientele.