"product Related Charge"

CURLYSANDY

Good morning Folks of the Forum - I need your advice please.

Looking through my old Mortgage documents. I transferred my mortgage from Abbey National to Halifax in May 2003 after the initial tie-in period had expired and Abbey duly sent the solicitors a redemption statement charging me a "Product Related Charge" of a whopping £3,892.20. There then followed a explanatory note
"Product Related Charge - This figure may be waived or reduced if a new mortgage (including the existing product) is being taken out simultaneously with Abbey. Please contact this office to establish if any or all of the charge can be deducted from the total balance due. Please note that only written confirmation of any amendments to the redemption statements should be relied on"

And muggins as we were 4 years ago, WE PAID IT!!! Any idea what this is and do you think I could reclaim??

Thanks .......hopingly

dunstonh

And muggins as we were 4 years ago, WE PAID IT!!! Any idea what this is and do you think I could reclaim??

That sort of figure sounds like an early redemption charge.

If it is, it is totally valid and you would have known about it before you agreed to the mortgage in the first place. It is part of the pricing built into special deals so the lender doesnt lose money by you leaving before they have a chance to turn a profit.

Leon_W

If I read that right then you should certainly query the charge.

You say that you transferred from Abbey to Halifax "after the tie in period had expired". Generally Abbey mortgages do not have any extended tie ins or penalties and that figure looks like a redemption penalty sort of figure.

Please be aware that when a solicitor asks for a redemption statement a few months before a deal expires then the redemption figure of course will be itemised. Afterall, Abbey will have no idea whether you are redeeming early or not.

Now, just because it appears on a redemption statement doesn't necessarily mean that you have paid it !.

Did you get a completion (not redemption) statement ? And is it on there ?

dunstonh

Another thing, older deals often had a tie in a few years after the deal finished. Are you sure the tie in had finished and not just the deal?