Redemption Penalty

TRACEY

just Thought I'd Let People Now About My Success With Abbey National, We're Paying Off Our Mortgage 7 Mths Earlier Than Contract And Given An Early Redemption Penalty Of Nearly £3000, I Wrote A Letter To Abbey Requesting A Reduction Of £1000 On The Basis That The Penalty Was More Than What They Would Acctually Lose In Interest Payments And They Agree To A £600 Reduction.
So Not Bad For 1 Letters Worth Of Work, You Don't Get If You Don't Ask, So Please Try Before You Pay Up It Could Save You Lots Of Money.

Munki_2

That's great. Just a shame they charge the penalties in the first place :-(

Still, if a bank or lender can't make shed load of money out of us slowly, they damn well make sure they add stupid conditions/clauses to allow them to make money out of us quickly! :-( They get us one way or another! :-(

fizzyhelen

Abbey also agreed to waive the £5000 redemption penalty that I would have owed due to having to change mortgage through no fault of my own.

Anne_Hughes

We took Martin's advice and paid our mortgage off all except £50.00 and the Abbey certainly don't like it. They have sent us a couple of letters saying we owe them the £50.00 plus the redemption fee plus six days interest on the cheque. We have told them we didn't want to pay the mortage off and are now waiting to see what their next step is. Their customer service was very poor and they were very beligerant. They also did not take the monthly mortgage payment and if like last time we paid a lump sum off, they will charge interest on the interest for them not taking it.

MarkyMarkD

Anne,

Could you explain why you have paid the mortgage off (or almost done so) if you didn't want to?