High street lender Santander has increased the early repayment charge (ERC) waiver period for existing homemovers to nine months or fewer.
This means that existing homemovers who choose a new product and have nine months or fewer left on their current deal at the time of application will not have to pay an ERC.
The ERC waiver period was previously six months or fewer on homemovers’ current deals, so brokers and customers have “more flexibility when deciding what to do with the mortgage”, Santander said.
Santander noted that if a borrower is borrowing the same amount or more, the ERC will be waived in full, but if they are borrowing less, then the ERC on the amount for the new product is waived.
Full mortgage applications submitted from 3 February will be assessed under its new lending policy.
Graham Sellar, head of intermediaries at Santander UK said: “We are always looking for new ways to support our customers in today’s changing mortgage environment. The extension to our ERC waiver period, which came into effect today, offers more flexibility to our customers who are looking to move home – meaning existing homeowners can now apply for a new product with us up to nine months before the end of their current deal, with no charges attached.”
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