Abbey National Rip Off - Please Help

LeanneG_2

HELLO ALL THIS IS MY FIRST POST AND WOULD LIKE A BIT OF ADVICE. I AM MOVING (HOPEFULLY EARLY SEPTEMBER) AND AM REDEMING MY MORTGAGE FOR WHICH I RECEIVED THE STATEMENT THIS MORNING:mad:

I HAVE A £30000 MORTGAGE AND I HAVE EARLY REPAYMENT CHARGES UNTIL 26TH OCTOBER THIS YEAR (SO A MAX OF TWO MONTHS) YET HERE IS WHAT THEY ARE TRYING TO CHARGE ME;

EARLY REPAYMENT - £686.70 WHICH INCREASES AT A DAILY RATE OF £4.06
CASHBACK CHARGE - £250
REPAYMENT FEE - £225

TOTAL = OVER £1200 FOR POSSIBLY 1 MONTH :mad:

I PHONED AND ASKED COULD I JUST NOT PAY THE MORTGAGE PAYMENTS UP TILL OCTOBER TO AVOID THESE COSTS AND THEY SAID NO

IS THERE ANYTHING I CAN DO? APART FROM DELAYING THE SALE AND PURCHASE (WHICH I REALLY DONT WANT TO DO)

brannyrhino_2

Is the loan portable? Can you take out the new loan with them to avoid the penaltys.

Is it a fair penalty or a overhanging penalty which you can challenge?

Ask them to raise it as a formal complaint.
copy in your MP
copy in your local paper
copy in Daily Wail Moneypage

When you receive no joy ask them for a deadlock letter so you can take the complaint to the FSA, This will cost them £300.00+ if you do this and they run the risk of the FSA judging the cost to be excessive and coming down on your side.

Good luck with this but it maybe you will have to delay the purchase unless someone else knows better

dwsjarcmcd

Firstly, were the charges laid out in your offer? I am pretty sure that they would be (with the exception of the repayment fee, which has probably increased) If they were, what grounds do you have to complain?

Your best course of action is to port the loan, but be careful if you have a need for additional borrowings and decide to take a product from the Abbey as you could end up with fees, redempion penalties again. It's maybe a thought to take the whole lot on SVR (or some such product which has no fees/penalties) for a month and consider your options for the whole amount after you are out of the penalty period

cattie

Unless your mortgage is portable the fees will stand, even if you move just one day before the redemption period. As previous poster mentions, they would be conditions you agreed to when accepting the mortgage, so there are no grounds for complaint.

Your best option is to delay moving untill 26th October.

regularsaver1

i saw a customer yesterday that is they paid their mortgage off on 31st July there would of been an early repayment charge of £250. By paying of on 1st august there was not this feee

this should have been laid out in your mortgage offer - unless you can hold up the move until the penalty period ends?

TangentMan

Two things.

There is no need to shout at us. You don't have a problem with us. The caps lock key is a dangerous tool.

Secondly, you are repaying early and thus you incur the early repayment charges. It is extremely unlikely these were not in your original offer. I suggest three options :-
1) port the loan to the new property
2) pay the fee
2.1 ) you may be able to challenge the repayment fee and get a few quid knocked off.
3) delay the move to the new property.

MikeP_5

Hiya

Couple of things :-

The repayment charge will be reducing at £4.06 per day, not increasing - it is based on a daily charge which reduces the further you get into a fixed rate period.

The cashback charge is the return of a £250 cashback you will have received when you took the mortgage out.

No way round the early repayment charge!

All the above will have been in your original offer letter, so I don't think you will have much luck in getting them overturned.

You should be able to switch the mortgage to you new house however without penalty, and you could then switch your mortgage once the early repayment penalty period has lapsed.

LeanneG_2

Thanks for your replys and look no caps lock! Seems i will have to pay and contest later, if you dont try you dont get. The early repayment charges are going up on a daily rate (someone posted they would go down) abbey confirmed this because we are on a discounted rate so god knows what the charges will be by the time we move. We had a statement in Dec and the charges then were £457 and now they are £670 ish (cant remember). One other point the cashback charge is not because of money we had when we took out the mortgage they said it is to pay back broker fees. Contacted the FSA - I can but try.

Leanne

regularsaver1

the interest would increase on a daily basis- are the two not being mixed up?

at the end of the day - you move during that period, the fees must be paid - unless you take new mortgage with Abbey

its not just Abbey that does this - so warnings on your new mortgage incase you move within that timescale off product too