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abbey/santander cap margin
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# 1
kr01
Old 02-05-2013, 2:22 PM
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Angry abbey/santander cap margin

hello I got a mortgage in Dec 2006 this was on a fixed rate for 5 years it then went on to the svr after this.

I got a letter this morning and it gave a leaflet saying what mortgage conditions I should look at for December 2006.
I looked at the book I still had and it says that

if the increase applies to whole of the capital you will be entitled to repay all the money you owe us within three months from the date on which the increase takes effect, without paying any early repayment charge that would otherwise apply.

if the increase applies only to part of the capita (the affected part) you will be entitled to repay the money you owe us or (the affected part) within 3 months from the date on which the increase takes affect without paying any early repayment charge that would otherwise apply to the affected part.

I spoke to a mn this morning before I looked for this booklet and he said it didn't affect me and that was it.
I found the booklet and went through it and this is what it says above.

so again I rang them this time I spoke to a lady she again said it didn't affect me.
I told her I got the mortgage in December 2006 and that it was fixed for 5 years and I also read the statement above and said that this did in fact affect me.
her attitude changed and she was off hand and than she asked me would I have changed anything about my mortgage back then and I said yes I would of looked elsewhere for a better deal
she said I would have to fill in a questionnaire and would take 15 min over the phone

I then asked for it to be sent to me as I would like to go over the questions they want.
I am so mad that they were trying to fob me off yes I may not get anything but this is not the point both of them said no when I asked if it affected me but I read them what it said in my mortgage conditions booklet of 2006
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# 2
JimmyTheWig
Old 02-05-2013, 2:33 PM
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You're in a similar position to us, and I don't think that we are directly affected by it.
You were on a fixed rate when the SVR went up. So you weren't affected at the time.
You could have remortgaged to a new deal (either with Santander or elsewhere) without penalty when the fixed rate finished so wouldn't have been affected by the increase.

I believe the people who are getting compensation are those who were tied in to the SVR.
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# 3
Thrugelmir
Old 02-05-2013, 5:56 PM
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You were in a fixed term of 5 years. So are unaffected by the change of SVR when it occurred. Simple as that.
"Bull-markets are born on pessimism, grow on scepticism, mature on optimism and die on euphoria."
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# 4
hpoolandy
Old 07-05-2013, 11:52 PM
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Quote:
Originally Posted by Thrugelmir View Post
You were in a fixed term of 5 years. So are unaffected by the change of SVR when it occurred. Simple as that.
so which fixed term mortgages would be affected by this .
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# 5
JimmyTheWig
Old 08-05-2013, 9:18 AM
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Quote:
Originally Posted by hpoolandy View Post
so which fixed term mortgages would be affected by this .
I believe it is any mortgages where you were tied into the SVR.
For example they used to do cashback mortgages. E.g. take out a mortgage and get 5% cashback. You were then on the SVR and if you redeemed your mortgage within the first 5 years you would pay a 5% redemption penalty.
I'm guessing that it is people like that. People on "normal" mortgages where they are tied in for the length of a deal but not tied in after that shouldn't be affected.
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# 6
instone67
Old 08-05-2013, 12:40 PM
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Just got my letter too.. We had a 2yr fixed rate mortgage (my first) summer of 2007 , early repayment charges were 925 so we didn't look around at the time Santander changed the interest rate. We went on to a SVR mid 2009. My letter says I was unaffected, does anyone have any advice for me.
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# 7
JimmyTheWig
Old 08-05-2013, 12:46 PM
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Quote:
Originally Posted by instone67 View Post
Just got my letter too.. We had a 2yr fixed rate mortgage (my first) summer of 2007 , early repayment charges were 925 so we didn't look around at the time Santander changed the interest rate. We went on to a SVR mid 2009. My letter says I was unaffected, does anyone have any advice for me.
If you were unaffected I'm not sure there's any advice to give.
Can you clarify that Santander didn't change the interest rate that you were paying whilst tied in? All they changed was the interest rate that you would be moving on to once the tied-in period was finished - i.e. you were free to switch mortgages without paying the higher rate?
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# 8
instone67
Old 08-05-2013, 12:56 PM
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Looking at my 2009 statement the interest rate changed on 03/05/2009 (from 5.19% to 4.24%) does that help?
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# 9
Vector
Old 08-05-2013, 1:22 PM
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I think I may be one of those affected but would appreciate opinions!

I took out my original mortgage in 2003, this was renewed on a new 2 year fixed rate in 2005 and then for a further 5 years, expiring in November 2010.

During this time we moved house, (April 2007) and Santander set up an another loan in addition to the original one but this was on a 2-year fixed rate. We had 2 parts to the one mortgage and this was all done under the same mortgage account.

Basically when the new deal expired we were forced to go onto the SVR for 18 months until the original deal expired. We were told at the time that unless we paid the penalty charge for the original deal then we had "no choice" but to wait until both had finished to bring things into line. Luckily the SVR was lower than our expiring deal so we were OK, but it could have been a lot higher and we would have had 18 months of increased payments.

The SVR we paid for these 18 months was 4.24 and Santander have admitted the highest they could have charged was 3.00 so I think I may have got a strong case.

We did actually stay on this SVR for a further 5 months after both deals had ended but we could have exited without penalty at any time during this period. This still doesn't escape the fact that they were overcharging us!

I phoned Santander but as we no longer have any accounts with them at all, (another story......) they couldn't verify the security questions. They will therefore be sending out forms for me to complete.
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# 10
JimmyTheWig
Old 08-05-2013, 2:07 PM
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Quote:
Originally Posted by instone67 View Post
Looking at my 2009 statement the interest rate changed on 03/05/2009 (from 5.19% to 4.24%) does that help?
Presumably that your ERCs finished on or before 03/05/2009. Is that the case?
You might need your 2008 statement to establish that.
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# 11
JimmyTheWig
Old 08-05-2013, 2:13 PM
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Quote:
Originally Posted by Vector View Post
I think I may be one of those affected but would appreciate opinions!
Strongest case I've heard, but I'm still not sure.

Quote:
Basically when the new deal expired we were forced to go onto the SVR for 18 months until the original deal expired. We were told at the time that unless we paid the penalty charge for the original deal then we had "no choice" but to wait until both had finished to bring things into line.
I believe that this is correct that to bring the loans into line you had to pay the ERCs on the first loan. But you could have taken another deal (e.g. another 2 year fix) on the second loan without penalty which would mean you wouldn't have paid the SVR.
Obviously had you have done this you would have been on the SVR on the first loan or paid ERCs on the second to bring them into line, etc. But I would imagine that they will say that you didn't _have_ to pay SVR on the second loan.

Worth asking them, though.
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# 12
Vector
Old 08-05-2013, 2:30 PM
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Quote:
Originally Posted by JimmyTheWig View Post
Strongest case I've heard, but I'm still not sure.


I believe that this is correct that to bring the loans into line you had to pay the ERCs on the first loan. But you could have taken another deal (e.g. another 2 year fix) on the second loan without penalty which would mean you wouldn't have paid the SVR.
Obviously had you have done this you would have been on the SVR on the first loan or paid ERCs on the second to bring them into line, etc. But I would imagine that they will say that you didn't _have_ to pay SVR on the second loan.

Worth asking them, though.
From memory I don't think there were any deals available at that time for the 18 months we needed that were comparable to the SVR rate anyway!

Regardless the point I want to make to them is that even if it was our own choice to stay on the SVR, was that this was set at 4.25 and not 3.00, (which they admit is the maximum they could have charged at that time) therefore quite simply, we were being overcharged!
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# 13
instone67
Old 08-05-2013, 5:05 PM
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Quote:
Originally Posted by JimmyTheWig View Post
Presumably that your ERCs finished on or before 03/05/2009. Is that the case?
You might need your 2008 statement to establish that.
Yes, you're quite right, I couldn't see how we would benefit from this error on Santander's part but I wouldn't have been able to forgive myself if I hadn't checked it out with somebody knowledgeable (I'm a mortgage mutt at the mo but working on it!)
Anyway, thanks for the help, it's put my mind at rest at least.
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