From 23 January borrowers who take out a mortgage with Santander will automatically be moved onto a Follow-on Rate (FoR) at the end of the product term – unless they select a new deal.
Up until now borrowers coming to the end of their product term, for example, two-year fixed rate or tracker mortgage, were automatically moved onto Santander’s standard variable rate (SVR) – currently 4.74%.
Santander’s new FoR is a variable rate that tracks at 3.25% above the Bank of England Base Rate (currently 0.5%) giving borrowers a rate of 3.75%. The rate payable will track all changes in Bank base rate, either upwards or downwards.
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