Abbey introduce MEAF that rises with inflation!!

abbeyinside

Have to post this, introduced for 14th August.

The key difference with this fee is that it is payable on Completion. The fee can be reffered until redemption. If deferred, the fee will be recalculated each year to reflect the changes in inflation occuring during the year. The first increase or decrease will be applied to the mortage account 13 months from completion. Subsequent increases or decreases will be calculated and applied annually up until the time the fee has been paid. Therefore, if inflation is 3%, the Mortgage Account Fee, will be increased as follows.

Year 1 (month 13) £225 x 3% = £231.75
Year 2 £231.75 x 3% = £238.70
Year 3 £238.70 x 3% = £245.86

:eek:

Scott

The issue with MEAFs at the moment isn't the level of the cost, it's the fact that they were changed without notification to the customer.

If they're saying "Look, here are the fees that are owing on this mortgage, and here is how they will change over time." then there is really no room to complain, you're taking the product while knowing this is due, if it's an issue find another mortgage.