NDF Homemaker Plan - Decision?

Bonnerg

I have an ISA Mortgage plan with NDF. NDF was put into administartion late last year with Grant Thorton. Told to carry on until issue resolved.

Had a letter today saying that the ISA mortgage book of investments has been brought by Synergy Financial Products Ltd.

This all seems ok and the letter all seems rosy in the garden and Synergy will continue with plan as before

Has anyone got any thoughts or experience with this

My initial thoughts are i have to carry on with this as the rate of return so far has been excellent

regards
gary Bonner

k_moore

I have had the same letter, as you, I have been happy with the plan so far but don't understand the existing/new management charges, still £2 a month but then says where there was an existing 0.00% per annum of the value of funds the new charge is 0.72% anyone know what that means? By the by, it is a mortgage ISA but I don't have a mortgage any more, should I transferring it?

nonethewisa

Im not able to post the link but i found this on the Synergy website

Questions and answers related to the acquisition of the ISA Mortgage business from NDFA

What happens to my Plan? We’re confident, you will notice little or no change in the way your Plan is administered. Synergy Financial Products Limited has acquired the ISA Mortgage Plans from NDF Administration Limited in Administration, as a result, your Plan can continue with no impact on your investments and insurances.

Why are the management charges changing? In order to provide you with the same quality of service levels and to make the acquisition commercially feasible, the charges needed to be varied.

Will my subscription stay the same? Yes, and you do not need to provide a new direct debit instruction for monthly collections.

Who is “Synergy Financial Products Limited”? Synergy Financial Products Limited (“SFPL”) are a financial services company that have been providing investment and insurance products to the retail financial services sector for over 20 years.

Why do I have to return the tear off slip? By returning the tear off slip, you are confirming that SFPL can manage and administer your Plan in accordance with the existing Terms and Conditions as varied by our letter dated 1 April 2011, notifying you of the acquisition .

What happens if I do not return the tear off slip? SFPL will continue to manage and administer your Plan, in accordance with the existing Terms and Conditions as varied by our letter dated 1 April 2011 (notifying you of the acquisition), until we receive a transfer request from your chosen ISA manager or we receive a surrender letter from you.

Performance information on Synergy seems a bit scarce, so ive still not decided whether to use Synergy or to transfer my Homemaker Plan elsewhere.

NTW

Concerned_Investor

Hi I too have had this letter. It concerns me enough that I have written to BBC Moneybox to see if they can help provide alternative options. Essentially you have to pay the original fees plus an additional 0.72% of the total fund value per annum so for a fund that is currently £100,000 you will be paying an additional £750 a year every year for the duration of the scheme assuming no fund growth (with growth it would be more!). So if you have 20 years left to maturity thats £15,000 additional costs. My current subscription is in the region of £200 monthly, therefore my current fees would be £132 per annum so why should I pay this plus £750 - TOTAL £837 per annum.

From researching I believe that Synergy was set up by NDF, indeed check the return address for Synergy on the Envelope "Ziggurat House" does this sound familiar?? Why has it taken Grant Thornton so long to sell the business back to an NDF subsidiary when they are sitting next to them in the same building, and to the detriment of the customer!

I do not know what alternatives are available but I would like to know if these fees are comparable to other schemes currently available and what the options are for transferring.

winston24

Concerned_Investor wrote: »

Hi I too have had this letter. It concerns me enough that I have written to BBC Moneybox to see if they can help provide alternative options. Essentially you have to pay the original fees plus an additional 0.72% of the total fund value per annum so for a fund that is currently £100,000 you will be paying an additional £750 a year every year for the duration of the scheme assuming no fund growth (with growth it would be more!). So if you have 20 years left to maturity thats £15,000 additional costs. My current subscription is in the region of £200 monthly, therefore my current fees would be £132 per annum so why should I pay this plus £750 - TOTAL £837 per annum.

From researching I believe that Synergy was set up by NDF, indeed check the return address for Synergy on the Envelope "Ziggurat House" does this sound familiar?? Why has it taken Grant Thornton so long to sell the business back to an NDF subsidiary when they are sitting next to them in the same building, and to the detriment of the customer!

I do not know what alternatives are available but I would like to know if these fees are comparable to other schemes currently available and what the options are for transferring.

Out of interest, did you make any progress on the extra charges issue and did you stay with Synergy. I am too not happy about the extra charges and unsure what to do, I need to talk to a financial advisor, but I don't know of any and concerned if I will be taken for a ride. Any one know how to check for a good advisor?