Flexible savings plan with mortgage

fili65

feisty1 wrote: »

Just check with Flexible repayments Ltd in Worcester that you can cancel the savings plan with them and not incur any charges..........Then fone the abbey & expain u'd like to make overpayments to yr mortgage...around march you should start thinking to review yr mortgage but make comparisons with what abbey's svr is, what deals they are offering before you consider moving away to another lender for another deal.......always plenty peope here to point u in the right direction............so dont worry

The company is called Principal Mortgage Services in Worcester. Have taken ytour advice and emailed them. Will let you know and thanks again for the friendly advice. Goodnight

Fliss

longmore1

fili65 wrote: »

feisty1 wrote: »

fili66: I have clients with these in place before, utterly useless..Can you remind me of the Co name who you "save" with

Check yr original mortgage documents section 11 this will tell you how mch you can overpay by. Just check if you end yr agreement with the savings plan they don't charge you for cxlg

11. What happens if you want to make overpayments? The company in Flexible repayments Ltd in Worcester. Their new plan states I should pay £143.08 per month which would reduce my outlay by £205.66.
At the moment I am requested to pay £132 per month but choose to pay £200 they just pay it in one lump sum minus the charge of £60 per year fee. My original Mortgage docs state I can make a lump sum or regular payments at any time of up to 10% in a year any more and I would incur early repayment charges. It also states if the overpayment is used to reduce the amount owing the interest will be recalculated. I managed to make a payment of £2977.44 and my interest has been reduced to £551.93 instead of previous payments of £556.99.

Thanks for your advice and interest

Fliss


I am now thinking I have been a pratt but was glad to get the mortgage in the first place.


[/quo

DOES ANYONE KNOW ANYTHING ABOUT THIS COMPANY THE ADDRESS WAS ST MARYS STREET WORCESTER FLEXIBLE MORTGAGE SERVICES OR PRINCIAL MORTGAGE SERVICES AS I THINK THEY HAVE GONE BUST PLEASE ADVICE.

Conrad

I cannot beleiev I'm reading this.
The savings plan is like the old discredited endowment as far as consumer outcomes are concerned. The reason they sold you this in stead of a capital repayment mortgage is COMMISION.

You will find deductions are taken from your premiums and those deductions go straight into the pockets of those involved - litteraly you are paying thier car / school fees etc each month.

Complain - get your money back and switch to a repayment mortgage would be what I would do if it were me. The FSA will almost certainly uphold your complaint.
If the broker has gone bust, then complain to the savings provider or the brokers network if there was one.

emily77_2

longmore1 wrote: »

fili65 wrote: »

DOES ANYONE KNOW ANYTHING ABOUT THIS COMPANY THE ADDRESS WAS ST MARYS STREET WORCESTER FLEXIBLE MORTGAGE SERVICES OR PRINCIAL MORTGAGE SERVICES AS I THINK THEY HAVE GONE BUST PLEASE ADVICE.

Yes they have gone bust :mad: ... we were also some of their disillusioned customers and looks like we will lose our savings from 2010 through this scheme. The liquidating solicitors have written to us, we had to provide a claim of what we are owed and have not heard any more yet. At their advice, we have cancelled the dd to Flexible Repayments Limited (FRL) and made our own arrangements for a savings account to do the same moving forward (why we didn't do this initially I now cannot understand, all I can say is the advisor did a good job on us and I had recently given birth to my youngest and was happy to let them take the stress out of the mortgage for me! )

Let me warn you, if you have to put in a claim like we did, be sure to check your BANK STATEMENTS to calculate this, don't go by the FRL quarterly statements as they had "mysteriously" omitted some of our payments, thus reducing the amount they were claiming to be holding for us!! I have no idea if we will get any of our money back and have as yet been unsuccessful in speaking to anyone on the phone who can advise me.

Conrad wrote: »

Complain - get your money back and switch to a repayment mortgage would be what I would do if it were me. The FSA will almost certainly uphold your complaint.
If the broker has gone bust, then complain to the savings provider or the brokers network if there was one.

Conrad - how would we go about doing this? I admit to being very naive in this area, hence why we have been caught out in this plan, any advice would be greatly appreciated.

Leon_W

Conrad probably meant the FOS

http://www.financial-ombudsman.org.uk/

The first step of any complaint is to the firm involved, but if they are no longer around then you can go directly to FOS.

I've never heard of the sort of scheme you got involved in and it does sound extremely dodgy on the face of it.

Regards