Screenshot of Mortgages Home Page Santander UK

Everyone wants a place they can call their own, and for many, the only way to afford this is through a mortgage. A mortgage is a special type of long-term finance that provides consumers with enough funds to purchase a property. The mortgage makes the bank the owner of the property until the final installment has been paid. This means that consumers only become the true owners once this takes place. Santander UK Mortgages offers consumers a few options where home finance is concerned. This review delves in to determine whether it measures up to its peers.

Mortgages are a big deal across the world, and State Bank of India proves it with their impressive review.

About Santander UK

Santander UK
Screenshot of the History of Santander UK

Founded in Santander, Spain in the mid-1800’s, this is a bank filled with rich history and a colorful past. Banco Santander, as it’s known in Spain, still enjoys the stunning Santander as its head office location. The bank initially started to provide basic banking services to the locals. Pretty soon, the popularity of the bank caught up with it and it was time to grow. The bank expanded throughout Spain and by the 1900s almost doubled in size. It wasn’t until the mid-1900’s that the bank decided to expand to the UK. With the first branch in the UK, it was only a matter of time before it became a favorite with the locals. Currently, the Santander Group is considered one of the largest in the world.

Simple Tricks to Get the Most Out of a Mortgage

A mortgage is a very long-term commitment and can often run for up to 25 years, if not longer. For customers, it’s  critical that they choose the one that matches their style. It is also crucial to understand a few things about a mortgage that could save them a chunk of money in the long run.

Pay Installments On Time

This is a critical part of ensuring that the interest payable reduces at an acceptable rate and the customers are able to pay off the capital. When an installment is in arrears, it attracts penalty interest and the mortgage takes that much longer to reduce the capital owing.

Pay Extra Where Allowed

Some institutions don’t allow customers to pay additional amounts into their mortgages at all. There are some institutions that allow this but to a maximum. Others allow additional payments as long as the mortgage is not settled before a certain number of years.

Choose the Shortest Term That You Can Afford

The longer the term, the more interest a customer pays over the long run. Shorter terms might have bigger installments, but this is to the customer’s benefit in the long run.

Put Down a Deposit

This is an integral investment in the property as that down payment allows customers to save a lot of money in the long term. This is because the interest payable over the period reduces.

Santander UK Mortgages Product Offerings

Screenshot of Mortgage Options Santander UK


Buying Your First Home

Customers who wish to purchase their first property and require finance will find these options suitable. Furthermore, customers also have access to 5% deposit mortgages.

  • There are exclusive mortgages available to Santander Help to Buy: ISA customers.
  • Customers have a variety of options how they can apply for the mortgage.
  • The loan includes a free standard valuation on a property should the property be less than £2.5 million in value.
  • Finally, customers who have a 123 Current Account or 123 Lite Current Account may benefit from additional special offerings.

Moving the Mortgage to Santander UK

Customers who wish to move over their mortgage to the award-winning mortgage division of Santander can do so with ease. Furthermore, there are no product fees on selected mortgages.

  • The loan includes a free standard valuation on properties where the value doesn’t exceed £2.5 million.
  • Furthermore, the bank will also pay the standard legal fees. These are only repayable should customers settle their loans within the first two years.
  • Customers have a wide variety of choices in how they apply.
  • Finally, customers have access to mortgage online and mobile banking.

New Customers Moving Home

Moving into a different home can be a daunting experience, however, Santander takes all the fuss out of the application process.

  • Customers benefit from no product fee on selected mortgages.
  • There are 5% deposit mortgages available as well.
  • Furthermore, customers benefit from a free standard valuation on properties where the value doesn’t exceed £2.5 million.
  • Finally, customers who happen to have a 123 Current Account or 123 Lite Current Account may qualify for additional benefits.

Mortgage Repayment Types

Repayment Mortgages

This is a repayment that includes both capital and interest. Customers who keep up with their payments will finish the mortgage when the term comes to an end.

Interest Only Mortgages

Customers benefit from lowered installments by only paying the interest monthly. They will, however, have to come up with a lump sum at the end of the term.

Different Types of Mortgages

Fixed Rate

This loan type provides customers with an easier way to determine their budget, as the installments remain the same throughout the mortgage term. This rate is often slightly higher than the current variable rate.

Tracker Rate

This rate tracks the Bank of England rate, which means customers will only experience a rate increase if the base rate changes. The rate only tracks for an initial period and customers may experience installment fluctuations.

Lifetime Tracker

Where the ordinary Tracker Rate only tracks the base rate for a set period, this rate tracks it for the lifetime of the mortgage.

Mortgage Schemes

Shared Ownership

With this option, customers part-own and part-rent their home. As time goes on, they have the option to buy larger shares in the home until they reach 100%.

  • Customers have access to these schemes through Housing Associations.
  • Furthermore, customers will need at least 10% deposit for the share of property they’re purchasing.
  • Finally, customers pay a subsidized rent to the Housing Association for the part they rent.
Help to Buy: Equity Loan and London Help to Buy

This is a government-run scheme that combines a mortgage with an equity loan. Furthermore, this loan type allows customers to buy a brand new home in England.

  • Customers only have to put down a deposit of 5% with this type of loan.
  • The government could provide an equity loan of up to 20% of the purchase. This can increase to 40% if customers buy in a London borough.
  • Also, these loans are interest-free for five years.
  • Finally, customers will need to apply through a financial adviser.
Forces Help to Buy

Customers who are regular armed forces personnel can apply for this scheme with the help of the Ministry of Defence. Furthermore, this scheme can be used in conjunction with any other mortgage scheme.

  • This loan allows customers to borrow up to 50% of their annual salary. This will go towards a deposit for a new home and is limited to a maximum of £25,000.
  • Furthermore, this loan is interest-free and is repayable over a 10-year period through the salary.

Santander UK has an impressive insurance range to go with their mortgages.

What We Like About Santander UK Mortgages

This is a great variety of options and will allow a variety of different clients to find the ideal loan. From those who are looking to purchase their first property to those who wish to move over from another institution.

Furthermore, customers have a number of options at their fingertips and all the information is set in an easy-to-navigate setting. This allows customers to do the necessary research without having to set a foot in the branch. Customers also have the benefit of dealing with an award-winning mortgage division.

Also, the loan types are filled with helpful information regarding the different loan types. Customers are also made aware of schemes that make their repayments a little simpler.

Finally, there are also a number of rate options to choose from. This allows customers to tailor their bond to their specific needs.

What We Don’t Like About Santander UK Mortgages

There is really nothing to dislike about the product offerings. This is a superb range that is seemingly flawless.

Another product that proves to be a winner for Santander UK is their current account range.

Critical Reviews Rating Santander UK Mortgages – 10 of 10

Screenshot of Mortgage Schemes Options Santander UK

When we come across a product range such as this one, it is with a sense of glee. There is absolutely nothing clients could want for as every mortgage requirement is available, apart from buy-to-let. Would we penalize the bank for this? Absolutely not. The attention to detail and careful detailing of everything involved with these loans sets the bank right up there with some of the finest mortgage ranges across the world.

Customers don’t have to dig too far to get the information they need, as everything is right at their fingertips. The bank’s website is easy to navigate and customers can do all the research without setting a foot out of their homes. Furthermore, the language is not filled with bank jargon, which makes it easy to understand.

This is a bank that understands what customers want and delivers. It offers customers great options without skimping on benefits. For that reason, we are happy to give a perfect score.

A personal loan is something many consumers may have to consider in their lifetime. Read the full review of Santander UK's Personal Loans.