What mortgages are on offer at Santander?
Santander offers a variety of mortgages and is one of a few banks to still offer Interest Only repayment plans. This type of mortgage used to be commonplace, but now they are rarely approved as the mortgage only covers the interest charges rather than paying back the mortgage itself. The capital still needs to be repaid when the mortgage term ends, so even if you go for this option you may need a separate investment scheme to cover the mortgage capital.
Most customers will opt for a repayment plan and then the main choice comes down to a fixed rate or tracker mortgage. The fixed rate is generally in place for two, or five years. That gives you the peace of mind of knowing that your mortgage payment will stay constant during that term, no matter what happens to the interest rates. The tracker changes up and down with the Bank of England base rate.
Do watch out for product fees which apply on some mortgages and make sure you factor them into your budgeting to make sure you’re not hit by any surprises.