NOT happy about this

trademark

ill try and keep this short

i had a flexible tracker recently, i sold my house and as i had savings enquired about paying off the 62k i owed, basically i asked for a closing figure

it was 62k + a 2% early redemption penalty

but i was told it was flexible and complained, there was nothing they could do, not true, i found out i could pay £61.5k the next day and as they do not charge penalties on £500 or less walk away penalty free.

however lets look at an example, if mrs smith who is 85 with the same product as myself, a product she would have paid a high arrangement fee for, wants to pay off her mortgage as her husband has died, she calls the bank and is told its £62k plus 2% redemption penalty, she pays it and the bank says nothing at all

their argument is that they are not allowed to give out advice, but this is not financial advice in my book , its common decency to point out a feature of her product that she has paid extra for.

the bank is santander, and i feel i should complain to the fsa

anselld

trademark wrote: »

i feel i should complain to the fsa

About what exactly? It sounds like your problem is already resolved.

Thrugelmir

Depends on the terms of each mortgage product if unrestricted overpayments are allowed. Currently some lenders have waived the restriction as they seek to reduce mortgage exposure and improve their balance sheets.

Do you need the sales proceeds to discharge the mortgage?

Peelerfart

So you asked a question,they answered the question but you then subsequently found a way around it.
Mrs Smith,your poor grieving widow,does exactly the same,except she doesn't find a way around it.

You can quote morals and ethics all you like but Santander have done nothing wrong,in my book.

Flyboy152

I really do despair at some people's reasons for posting on these boards, I really do. Have any of them ever read the title of this site? The site is here to help people save money, it is quite self-explanatory. If there is anyone who can explain this, so that mistakes are avoided when posting, the consuming public will be very grateful.

It seems to me that they are the same people who complain, "did no one ever bother pointing this out to the regulators?" :wall:

kingstreet

trademark wrote: »

ill try and keep this short

i had a flexible tracker recently, i sold my house and as i had savings enquired about paying off the 62k i owed, basically i asked for a closing figure

it was 62k + a 2% early redemption penalty

but i was told it was flexible and complained, there was nothing they could do, not true, i found out i could pay £61.5k the next day and as they do not charge penalties on £500 or less walk away penalty free.

however lets look at an example, if mrs smith who is 85 with the same product as myself, a product she would have paid a high arrangement fee for, wants to pay off her mortgage as her husband has died, she calls the bank and is told its £62k plus 2% redemption penalty, she pays it and the bank says nothing at all

their argument is that they are not allowed to give out advice, but this is not financial advice in my book , its common decency to point out a feature of her product that she has paid extra for.

the bank is santander, and i feel i should complain to the fsa

I'm not sure if I'm understanding you correctly, but you appear to be saying that you could have used the £500 overpayment facility to reduce the balance to £61,500, then escaped paying a penalty?

I think you'll find the result of doing this would be to save yourself 2% of the £500, or £10, as you would still have to pay the penalty on the remaining £61,500.

Or I'm completely misunderstanding you?

Thrugelmir

kingstreet wrote: »

I'm not sure if I'm understanding you correctly, but you appear to be saying that you could have used the £500 overpayment facility to reduce the balance to £61,500, then escaped paying a penalty?

I think you'll find the result of doing this would be to save yourself 2% of the £500, or £10, as you would still have to pay the penalty on the remaining £61,500.

Or I'm completely misunderstanding you?

I believe the OP is suggesting to reduce the mortgage balance to £500 using savings. Then requesting to close the mortgage. So the 2% ERC is merely charged on the remaining £500.

kingstreet

Thrugelmir wrote: »

I believe the OP is suggesting to reduce the mortgage balance to £500 using savings. Then requesting to close the mortgage. So the 2% ERC is merely charged on the remaining £500.

So they'll let him pay off £61,500 penalty-free and only charge 2% on the £500?

Ok. I did completely misunderstand.

anselld

.... and I think 2% is waived on or below £500, hence no fee at all.

pawlala

Very difficult to understand OP's message

kingstreet

So Santander are waiving early redemption penalties?

Why? Anyone know?