Mortgage Transfer

maythorn

My son became divorced Jan 07. He's moved out of the matrimonial home, he and his ex were sharing the mortgage payment, until she was advised not to by her solicitor, and didn't pay her share of Nov, Dec and Jan, however, the mortgage repayments are now up to date. During this time, the two had agreed that her name should be taken off the mortgage, and my son had to apply for this to happen. The Abbey agreed, after checking out earnings and doing a credit register search etc. Now, my son would like the mortgage transferring onto the property he moved into, but the Abbey has said they would charge £2500 penalty fee, as he and his wife had taken a new 5 year fixed rate Feb 06, and the reason for this is that the new house is already in his name. If it had been purchased in mine and my husband's name, that would have been OK, but as it is, it has been in my son's name since Dec 06.

Divorce is a very heart rending and expensive business, and I can't believe that the Abbey stand to gain £2500 from this, which seems to be a technicality, as well as charging more interest on the "new" mortgage, although since Abbey agreed the new mortgage in my son's name, they have since withdrawn their offer ~ I have been told because of the late half repayments at the end of 06. This has happened in the space of a week or so. Should my son pursue this with the Abbey, or cut his losses and try somewhere else?