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Switching from A&L to SAntander (Abbey) Mortgage

Hi,

I have come to the end of a 2 year fixed rate with A&L and am now on their SVR of 4.99%. I have just seen that Abbey's SVR is only 4.24%. Now the two banks are part of the same company, should I be able to easily switch providers? It would mean a saving of around £80 per month.

I rang A&L and they isaid it would be possible if I pay a £295 early redemption charge.

Is there any way around this fee, and do you think it would be worthwhile me switching, or is it likely that A&L will also bring down their SVR inline with abbey?

I dont think I can get any other deals anywhere else as Im in negative equity!

Any advice would be much appreciated! Thanks.

Comments

  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    The £295 is not an Early Repayment Charge - it is the "exit fee".

    This fee is paid to close the mortgage down - so if you leave A&L it is payable.

    If you want to go to Abbey you would need to go through the standard re-mortgage process - and being in negative equity, it would not happen.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • davetrousers
    davetrousers Posts: 5,862 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Aren't Alliance and Leicester part of Santander?
    .....

  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    Same group - currently different lenders - different rates and different policies (although becoming very similar)
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • neil40
    neil40 Posts: 753 Forumite
    By the end of the year A&L will be Santander(new name for Abbey) and the two company's rates should(i say should!) be the same....Neil
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