Contributors:
Quick Summary
- Santander does not provide equity release options but caters to senior customers by offering tailored financial products such as age-specific savings accounts, retirement mortgages, and pension management services.
- The bank supports retirement financial planning through resources like retirement calculators and personalised advice, along with specific investment and savings options designed for retirees.
- Comprehensive financial planning services at Santander include strategies for retirement planning, estate management, and investment, supplemented by accessible banking services and financial advisory tailored to their needs.
Being one of the best equity release companies in the UK, Santander’s equity release may be a viable option and, therefore, worth looking into.
In this article, our knowledgeable team provides a comprehensive insight into Santander's products, its partnership with Legal & General, and the myriad of benefits it brings to the table.
In This Article, You Will Discover:
From understanding the foundational aspects to customer feedback, regulatory details, and more, this review promises a holistic overview. Have a look.
NB: Fundweb is an unrelated and independent 3rd-party provider, and the information provided in this article are the opinions of Fundweb only and may not reflect the views of Santander. This article is not to be construed as advice, nor is it a solicitation to enter any financial product provided by Santander.
What Is An Equity Release Loan?
In the context of personal finance, an equity release loan refers to the process of tapping into the value of your property for additional financial support.
Who Is Santander?
Santander is a prominent high-street retail and commercial bank in the UK, catering to over 20 million customers.1
It has been active in the UK since 1988 when it joined forces with The Royal Bank of Scotland for 15 years.
And, in 2004 it acquired Abbey National, and in 2008 and 2009, respectively, it also took over Bradford & Bingley, as well as Alliance & Leicester.2
Does Santander Have an Equity Release Product?
No, Santander is not an equity release company and does not have its own equity release product.
However
Through a partnership with Legal & General, existing Santander customers can access equity release options.
What Does the Santander and Legal & General Partnership Entail?
Although Santander does not directly handle equity release, they have been referring clients to Legal & General since 2016 due to a collaborative agreement.
In 2021, this agreement, which encompasses later-life mortgages, was renewed for another five years.3
This collaboration facilitates access to lifetime mortgages for Santander's Interest-Only mortgage clients as their plans come to an end.
Features of Santander's L&G Lifetime Mortgage
Available to homeowners aged over 55, this mortgage option offers:
- A minimum borrowing limit of £10,000
- A £70,000 minimum property value for most house types
- A fixed-for-life interest rate
- Optional interest repayments
It is essential to consider that opting for a lifetime mortgage should impact the inheritance you leave and could affect certain means-tested benefits.
Why Should You Contemplate Santander's Equity Release Option?
Choosing Santander may be appealing due to its reputable standing and FCA regulation.
Also:
- Through Legal & General, Santander extends lifetime mortgages to clients.
- Retirement Interest-Only (RIO) mortgages are accessible via Legal & General.
- Legal & General was named 2021's Moneyfacts Best Equity Release Provider
- It is a member of the Equity Release Council (ERC).
What Are the Pros and Cons of Santander's Equity Release?
Although Santander provides a regulated equity release service in collaboration with Legal & General, it is important to consider risks like leaving a smaller inheritance.
Pros to think about:
- Free property valuation
- No obligatory monthly payments
- Retention of full home ownership
- Home equity line of credit for select clients
Cons you must know:
- Restriction to existing Santander customers
- Limited online information
- Potential high borrowing costs
- Reducing inheritance
What Interest Rates Does Equity Release Through Santander Offer?
Interest rates are contingent upon those set by Legal & General and are subject to change.
Currently, equity release rates are between 6.14% to 6.46%*
*While we regularly review our rates, these may have changed since our last update.
What Does Santander's Equity Release Cost?
While potential application fees may apply, consulting an advisor about any associated costs is advised.
Are Other Equity Release Alternatives Available?
Alternatives are available, like using existing savings or reducing expenses.
Here are some additional alternatives:
- Downsizing your property
- Remortgaging your home
- Opting for a retirement interest-only mortgage
It is vital to consult with a financial expert to evaluate these options comprehensively.
Is There an Equity Release Calculator Available for Santander?
Yes, there is an equity release calculator on the L&G website.
You can also try our free calculator to obtain an estimate of how much cash you can unlock from your house.
How Do Customers Feel About Santander's Services?
To find out how customers feel about Santander, check online platforms and feedback from regulatory bodies.
Here are some links:
How Can Customers Lodge Complaints?
Customers can lodge their complaints:
- Directly via Santander's Support page on its website
- post reviews on platforms like TrustPilot
How Did We Review The Information on Santander?
We reviewed Santander based on the following:
- Company Reputation and Longevity: We consider how many years a company has been operating, along with customer feedback and any awards received within the industry.
- Financial Stability: The company must demonstrate strong financial health, with sufficient resources to fulfil long-term commitments.
- Diversity of Offerings: Preference is given to companies that provide a range of equity release schemes and exhibit significant product adaptability.
- Competitive Interest Rates and Transparency: We examine whether the companies offer competitive rates compared to industry averages and require complete transparency regarding fees, with no hidden charges.
- Customer Assistance and Resources: We evaluate customer service and support availability, response times, and the range of online educational materials offered. The availability of online tools, such as calculators, is also taken into account.
- Adherence to Industry Standards: Only companies that comply with recognised industry standards and codes of conduct are taken into consideration.
- Industry Recognition and Peer Evaluations: As evidenced by peer reviews, the company’s reputation within the industry is a crucial factor.
- Innovation and Digital Integration: We assess whether the company employs modern technology, offering a seamless and digital application experience.
- Client Feedback and Complaint Resolution: We look at success stories and the process in place for resolving customer complaints.
Where Can You Find Santander?
Originating in Spain, Santander is among Europe's largest banks with an international footprint, which also includes businesses in North America, South America, and Asia.
How Can You Contact Santander?
Different regions have unique helpline telephone numbers.
The UK customers can get in touch as follows:
- Phone: 0800 068 6064
- Email: consumerservice@santander.co.uk
- Address: 2 Triton Square, Regent’s Place, London NW1 3AN.
Regulatory Details
Santander UK plc is a regulated financial services organisation.
It is regulated by the following industry bodies:
- Financial Conduct Authority (FCA)
- Prudential Regulation Authority (PRO)
- Equity Release Council (ERC)
Financial Conduct Authority (FCA)
It is one of nearly 50,000 businesses in the UK regulated by the Financial Conduct Authority (FCA)4 to ensure good conduct by the financial services sector.
According to the FCA's records, the firm is registered as Santander UK Plc and permitted to provide financial services for banking, mortgages and home finance, consumer credit, insurance, pensions, and investments.
Prudential Regulation Authority (PRA)
It is also a member of the Prudential Regulation Authority (PRA),5 which forms part of the Bank of England and is responsible for supervising financial service providers to ensure products are offered safely and soundly.
Equity Release Council (ERC)
As a member of the Equity Release Council (ERC),6 the firm adheres to the industry body’s strict code of conduct to safeguard consumers.
Common Questions
Is Santander a Member of the Equity Release Council?
How Can One Apply for a Job at Santander?
Can You Repay Santander Equity Release Early?
How Is the Home Valued for Santander's Equity Release?
What Happens to the Santander Equity Release if the Property Is Sold or the Owner Passes Away?
Can I Move Home Once I have Taken Out Santander Equity Release?
Is There a Cooling-Off Period with Santander's Equity Release?
What Are the Risks Associated with Taking Out Equity Release with Santander?
Can Joint Owners Apply for Santander's Equity Release?
What Types of Properties Are Eligible for Santander's Equity Release?
Conclusion
Santander, with its esteemed reputation and customer-centric approach, has certainly made strides in offering a reliable equity release product, especially in collaboration with Legal & General.
If you are contemplating one of these products, we recommend seeking tailored advice from a qualified financial advisor and exploring Santander's equity release offerings to determine if they align with your financial goals.