Santander Mortgage Review – Forbes Advisor UK

What type of lender is Santander?

Santander is one of the biggest – and best known – mortgage lenders in the country and has more than 100 million customers.

According to our mortgage partner, Trussle, the bank lent £26.6 billion in 2020. This represents nearly 11% of all mortgages.

Santander is a big bank. It has 450 branches in its network providing coverage across the UK.

What type of mortgage offers does Santander offer?

Santander has an established presence in the mortgage market and offers products to many different borrowers, including first-time buyers, movers and repayers.

The majority of its home loans are fixed rate and have an initial term of two, three or five years.

But the lender also offers trailing mortgages, usually for two years, after which you’ll transition to a trailing rate.

As the bank offers low deposit mortgages, this could be a good option for beginners. For example, it offers 5% deposit mortgages available through the government’s “Mortgage Guarantee Scheme”.

It also offers rental mortgages through its specialized branch, Santander for Intermediaries.

Free mortgage advice

Trussle is a Trustpilot 5-star rated online mortgage advisor who can help you find the right mortgage – and do all the hard work with the lender to secure it. *Your home can be repossessed if you don’t continue to pay your mortgage.

How long does it take to apply for a mortgage in Santander?

In Santander, it takes an average of 19 days to get a mortgage approved, according to Trussle. That’s five days slower than the average lender approval time as measured by the broker.

However, the time your own application will take will depend on factors such as your situation and the occupation of the lender. The Covid has also been the cause of some delays.

How much can I borrow in Santander?

You may be able to borrow between 4.45 times and 5.5 times your income in Santander, but it will depend on your salary. It will also depend on the Loan to Value (LTV) ratio you hope to borrow from.

Other factors, such as your age, credit history, debts, regular expenses and bills will also be taken into account.

Here’s how it works in more detail:

  • If the combined income of all applicants is over £100,000 and you have an LTV of up to 75%, you may be able to borrow 5.5 times your combined income. This drops to 4.45 times if the LTV is 75% or higher
  • If the combined income is between £45,000 and £99,999 and you have an LTV of up to 75%, you may be able to borrow 5 times your combined income. This drops to 4.45 times if the LTV is 75% or higher
  • If combined income is less than £45,000 the maximum you can borrow is 4.45 times income.

Note that you may also be able to get an income multiple of 5.5 if you take out a new mortgage and don’t need a capital raise.

For a purchase assistance equity loan, the maximum is 4.5 times income.

Always remember that your home can be repossessed if you don’t meet your mortgage payments.

How can I get a Santander mortgage?

You have the option of going directly to the bank or going through a mortgage broker.

You can apply online or by phone.

First, you will receive a “decision in principle” telling you how much you can borrow. This can be useful if you want to make an offer on a property or mortgage in Santander.

You can then complete a full application. If you succeed, you will receive an offer.

When applying, you will need to provide details including your last years of address history, proof of address and proof of income. You will also need to provide details of any outstanding financial commitments, such as loans or credit cards.

A broker can help you get your mortgage approved faster by making sure your application has all the details the lender needs.

Once you have an official mortgage offer in writing, it usually lasts between three and six months.

Will I need a good credit score for a mortgage in Santander?

To be accepted, you will need to have a good credit rating. Generally, Santander will not lend to people with a bad credit history.

How is customer service at Santander?

Santander scores around 54% for “consumer happiness” with data provider Fairer Finance, and 43% for “consumer confidence”.

It scores quite high with a score of 77% for how it handles complaints; its “transparency rating” is almost 57%.

Overall, it gets a “customer experience rating” of 58%. To put this into context, the highest rated lenders with Fairr Finance have an overall score of 70% or higher.

Do I need building insurance with a Santander mortgage?

When taking out a home loan in Santander, you must take out insurance, but the lender cannot require you to take out one of their policies.

If you choose to purchase building insurance from Santander, it will be administered and underwritten by Aviva Insurance Limited.

However, the best approach is to search for the best deal on home coverage. If you are buying a property, always make sure that building cover is in place at the redemption point.

Should I get a Santander mortgage?

Santander is an established lender with a reputation for offering competitive mortgage rates – often at rates below the market average – as well as potentially generous income multiples for those with higher incomes.

That said, the bank is unlikely to offer a mortgage to those with bad credit.

Before choosing a mortgage in Santander, it is important to compare offers from across the market to ensure that the product you are considering offers good value for money and is best suited to your needs.

About Nicole Harmon

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