abey svr-interst only

joe134

Hi, Any one who can help would be appreciated.I have a house on sale with abbey £35 k mortgage, 15 years of 25 left, valued and on sale for £200k.Having financial trouble meeting repayments due to job market. asked abbey to change to interest only till house is sold, enough equity in house to cover,ageed at first, however require me to take out a payment vehicle , had that,pep, I want to reduce outgoings not add to them.then answer is no. Will extend life of mortgage, nogo.All I require is a holiday of payments off house, pay interest only, saving £140ppcm.Immediatly got e-mail trying to sell me pension linked to house. coincidence or not? any one any ideas please

anselld

Try pointing out to them that it would potentially be miss-selling for them to force you to take out a long term repayment vehicle when it is clearly inappropriate for your circumstances (ie selling soon).

Unfortunately they are not obliged to let you go to interest only, but it might be worth a try, if you can find anybody sensible in Abbey to talk to that is!

joe134

Mentioned to them it was probably only short term, who is going to set up a long term vehicle for probably a few months? They said a fee of £75 was required andif I supplied a letter from estate agent they would take it into consideration, however they still said no, I had to have another vehicle. When I went with them I had IO with a pep, they suggested changing to svr, I cancelled Pep, there is no vehicle available that will gaurantee the full amount or the country would not be in the mess it is.I was on jobseekers, how would I have got the government help of IO?

anselld

What about setting up an ISA then? Set it up long enought to show willing - and get back to IO. Then stop it and take the money back out. I don't think they can force you to have any long term vehicle or to continue payments into it. They certainly can't force you to have an endowment or pension vehicle.

anselld

Oh, and however things go in the future, once you are out of Abbey never set foot in there again! They don't deserve to have customers.

joe134

Hi, I presume a stocks isa, or is it cash isa? Little bit confused, but intrigued, thanks

Thrugelmir

Why not cash in your PEP and other savings. As your mortgage repayments can't be that high?

The Abbey aren't being unreasonable when you still have savings.

joe134

They are being unreasonable now, I have been with them since I was young, even they agreed it made no sense in paying any more off my capital when I am selling to downsize, all I am asking for is a capital holiday till I sell, they are still getting their interest, they are only trying to sell me something I do not require or is nescessary, help is all I am asking them for. I shall definitely not return after I have sold.I cashed the pep in when I took out their svr

joe134

If I had savings I would not be requesting their help, I think they would be happy if I went into arrears, they know their money is safe with 20% approx LTV

anselld

joe134 wrote: »

Hi, I presume a stocks isa, or is it cash isa? Little bit confused, but intrigued, thanks

Yes, stocks & shares ISA, they won't find a cash one credible given the low interest rates. Just get a cheap FTSE tracker or something with low fees and set up a regular payment. They might check you have it but they can't force you to take their product and by the time they check again, a year at least, you will no-doubt have sold and settled. You can recover the money out of the ISA as soon as they are off your back.

Don't use a pension becuase you can't get the money out till you retire.

joe134

Thanks, I will look at the ISA option, much appreciated