Have Alliance & Leicester dropped SVR?

1978

Hmmm.. I didn't even twig that this was the case. Just checked the A&L website following the hold in base rate and thought our SVR had dropped to 4.24%.

Shame that it hasn't.

4.99% must still be one of the highest of the major lenders then?

Headieboy

Just had a look at the A&L web site as my current deal with YBS is about to end. It clearly states

If you have an Alliance & Leicester mortgage the Standard Variable Mortgage Rate is currently 4.99%.

If you have an Abbey mortgage the Standard Variable Mortgage Rate is currently 4.24%.

russell_hadd

Headieboy wrote: »

Just had a look at the A&L web site as my current deal with YBS is about to end. It clearly states

If you have an Alliance & Leicester mortgage the Standard Variable Mortgage Rate is currently 4.99%.

If you have an Abbey mortgage the Standard Variable Mortgage Rate is currently 4.24%.

Excuse the oxymoron but there does appear to be a need for A&L to explain themselves a little more clearly here. If they have not made an error then they are operating two SVRs. The 4.99 rate for existing customers, as shown in the above quote, and the 4.24 rate for new customers as shown on the page listing all their deals. Perhaps this is just the first signs on the website of the merging of the banks. If it is then Santander are not handling it very well and need to be a little more transparent. The fact that the A&L new mortgage deal carries the heading of "Followed by the standard variable rate, currently - 4.24%" requires further explanation from the bank. It seems to be only Abbey mortgages that are offered on the page but probably needs to have a further clause stating that new A&L mortgages are no longer available.

DeepThought_2

I think it is clear that they intend to run with two SVRs. My main concern (apart from having a high SVR compared to other banks of 4.99%) is that there now appears little to stop Santander from increasing the 'A&L' SVR as this is no longer used to attract new customers, and hence increasing it will have no effect on new business, but would generate revenue. I have 3 years left on a discounted SVR and am probably in negative equity, and so have no where else to go.

Is there anything we can do to highlight this problem of a bank having effectively two SVRs?

riqi

I'm so annoyed! I feel like writing to the Santander boss, Emilio Bot!n. I'm Spanish and I'm so embarrassed these people could treat their existing customers this bad!

PS: another saddo, I also have the A&L rates website in my favorites!

M2K7

I stumbled across the rate change and thought A&L had dropped rates also. Are they allowed to have 2 SVR products? Really concerns me what happens with A&L SVR when rates ever go up again one day.

We need Martyn to fight our corner on this one!

garetho

Sadly, I am an A&L customer and also infuriated that they are clearly taking the...mickey out of their customers. I wrote a letter to A&L customer services but as you can probably guess, I got a 'standard' reply of "....we are disappointed to hear of your concerns....we regularly check competitors rates....we need to balance the needs of borrowers & savers alike....blah blah blah". I even pointed out that the Abbey rate was less than less than A&L, and the reply was that A&L & Abbey hold different banking licenses. Whatever that means.

The response was basically a load of rubbish, their rates for borrowers are amongst the highest around, their rates for savers are very average. They are just exploiting their customers because they know that anyone in negative equity are stuck with them, so we have no option but to pay hundreds of pounds extra every month to fill up their retirement fund pot.

Sorry to rant, but I am seriously annoyed. Surely there must be something that can be done....Martin??

adtheblue

I've come to the end of my (3 year) fixed rate period with A&L and have been put on their SVR of 4.99. It is outrageous that new customers taking out the exact same product as I had will go on to the Abbey's SVR (4.24%) at the end of their fixed rate period.

Surely this cannot be treating customers fairly!

I have therefore written to A&L today requesting to be given 4.24% on the basis of treating customers fairly and that if they do not, I will be taking my complaint to FOS.

I think that Martin is more likely to get the change we (A&L SVR customers) all want rather than the suits at FOS.

I suspect that Santander see Abbey as a much better brand than A&L (previously fined by the FSA for mis-selling PPI) and therefore don't really care about existing A&L customers or what people think of A&L.

It is scandalous that a bank can have such scant regard for its customers after everything that has happened in the last 18 months.

I shall let you know what happens with my complaint but I fear I'll get nowhere! :mad:

MB1919

My two year fixed rate deal with A&L runs out next month and like everyone else I am fuming about their extortionate SVR. Luckily, I am in a position to make a decent capital payment to get myself out of near negative equity. Let's just say that when I remortgage I won't be considering the Bank of Santander.:mad:

DeepThought_2

This a response I got from the FSA consumer services;

'When firms merge and/or become part of the same banking group, it is not uncommon for different firms within that banking group to offer contrasting mortgage and savings interest rates. The level at which these rates are set are commercial decisions on the part of the senior management of the firms. Although the Financial Services Authority (FSA) sets the rules and guidelines for the firms that we authorise and regulate to follow, and can take action if there is a breach of these rules, commercial decisions do not fall within our remit. Therefore we cannot comment on the rates offered by Alliance & Leicester and/or Abbey.

If you are unhappy with the rate you are currently being offered, I would suggest that you speak to Alliance & Leicester about this, to see whether it is possible to transfer to another product. Before doing this, you may wish to consider whether you will be liable for any early redemption charges, and whether these would outweigh any additional savings. Your local Alliance & Leicester branch will be able to help you with this.'

My argument would be thay as A&L and Abbey are both being rebranded as Santander that there are not two 'firms' in the group?