Abbey LTV "threats"

udydudy

space_rider wrote: »

Wonder why they sending them to me. I never used to get them before the start of the credit crunch!

I guess they are hoping to catch a few of us offguard and we borrow so that they can have the pleasure to ask for it back at a later date.....(just Kidding!!)

Banks have to lend to stay in business, so they will now filter out the customers who have been managing their finances well so that they can lend to these and earn a income.

We(me and OH) get a lot of these letters every quarter from our mortgage provider and nearly every other month from banks where we hold savings accounts(no debt),

I consign all of these to my greatest ally in debt busting which is also called a shredder!!!...

abbeymortgagevictim

Hi,
I write this only to be of assistance and informative to the victims, like me, who have already lost access to funds that thave been overpaid on the basis that overpaid funds would always be available.

Since October 2008 when I received the revaluation letter I have been in complaint correspondence. Trying to get straight, unambiguous answers from Abbey is like getting blood from a stone. I have identified actions that appear not to conform strictly with the T&C's. My complaints are based on the terms and conditions of the mortgage. It iseems to me that Abbey only want to answer complaints and queries in general terms. They seem rather reluctant to confirm specific information that directly references the particular terms and conditions they are relying on. I think this indicates a weakness in the justifications of their actions. This may need to be chipped away at by affected customers complaining in writing.

I have the following comments with reference to the T&C's
1. A revaluation is subject to written notice. None was given (in my case) as the funds were deducted prior to their letter confirming that they had made my overpayments unavailable to me.

2. Abbey have used the Halifax Index to calculate an estimated LTV. The T&C's do not appear to allow for an estimated valuation. A valuation must, according to the T&C's, accurately relate to 90% of a mortgaged property market value. (Not an estimate)

3. The Halifax index is not currently in my opinion an accurate indicator for all of the market as it is only based on sales by Halifax and their recorded sales are now massivly diminished and may also relate to many sales in distress. Therefore, in my opinion, the Halifax Index may be skewed and distorted. (Although accurate for it's own 'In House' purposes.) Historically it seems that the the Land Registry and Halifax Indexes have been more or less in line with each other. But, times have changed and there is now a significant divergence. The Halifax Index shows a greater fall in house prices than the Land registry. (Abbey may have used the Index which best suits an objective of gaining as much funds as possible from customers accounts. (Even though there are no provisions in the T&C's for estimated valuations.)

The Land Registry Index is much more accurate than Halifax as it reports based on ALL house sales in a period.

5. In the circumstances such as mine where overpayment funds have been taken without notice. Abbey have stated publically that they are not invoking the 19.6 clause that allows them to demand payment within 3 months. There are not any other mechanisms in the T&C's in my opinion that allow funds to be to be taken and demanded. So a vehicle for not allowing access to overpaid funds by customers does not appear to be available to Abbey at this stage. (Although they have already denied overpaid sums from customers like me.) Potentially this is an area where Abbey have already invoked actions that do not strictly conform to the T&C's. In the creative arts world this would be called improvisation, or, taking a written theme and making much more of it. I simply call it a Cash Grab Rip Off.

There is in my opinion also an important lack of reference to Abbey's revaluation procedures in the key facts of the offer documentation. For instance, there is a section in the key facts warning of the risk if property prices fall but no mention that they can demand payments to bring the property loan in to line with 90% of an adjusted property value.

Send a letter to your MP.

Send a report to the FSA. (They definitely invite the reporting of unfair contract terms on their website.

The BBC reports that a further valuation will take place in January by Abbey. As house prices continue to fall more and more people may be affected by future revaluations.

My personal view is that if you have not already been affected do not wait until you are. Draw down any previous overpayments and take them to another bank account. Or, take any savings you have in the savings pot and move them to another bank. In this way Abbey will not be able to grab your money without giving notice (As they have already done in my and others cases.)

Bye the way, and for all the cynics. I have a 100% good payment record. Abbey customers of good standing are being affected.

This is in my opinion a toxic product that appears to have been carefully targeted at borrowers with savings. If I had not already been affected I would protect myself immediately.

I hope affected customers of Abbey keep up the complaints.

I hope affected customers will not be put off from doing so by forum cynics.

I hope that affected customers check the facts..........

The above does not constitute legal or any other advise. The above is set out to share information.

3under3

Seems a bit rough if you borrowed at 90% LTV a few years back and have overpaid then you will have your savings pot reduced, but if you hadn't overpaid at all you wouldn't be asked to make a lump sum repayment. Seems to be penalising the savers compared to the non savers. If people had saved elsewhere then the Abbey wouldn't be able to touch it. I have offset savings with Abbey which I'm planning to use to extend out home and while my LTV is not near 90% it looks like it would be a safer bet to save move the money elsewhere.

Wappers

No over payments (savings pot) were taken from us, merely the available credit reduced. Using the Halifax index our LTV was 0%, after the reduction is is now 95%, as we are only 2 years in, they could not reduce it further.

However, if we had made over payments to the capital pot, I suspect these would have been. These are separate pots.

e.g. in 24 years (on a 25 year mortgage) you would still be able to withdraw previous payments (draw down) from the paid off capital to 90% LTV (or whatever was agreed in the original offer)

The available balance is a bit like when I have £100 in the bank and I go to an ATM and it says available balance £1600 as I have an authorised overdraft of £1500. With the mortgage the authorised overdraft is to an agreed % of the property value.