Beware the Abbey

Sarujima3

Just thought I'd alert you guys to this to avoid you getting caught out the same way:

Back in April I was offered a fixed rate of 5.14% by the Halifax (This was for a further advance). At the time I was with Abbey so I called into their branch to let them know that I'd be closing my account and moving to Halifax. They assured me that they could match the offer being made by Halifax and based on that assurance I completed the application there and then. Once the application had been processed they told me that 5.14% was no longer available and that the best they could do was 5.34%.

Consequently I've been stung by the Abbey and am now paying more that I would have been had I moved to Halifax. I've been through their complaints procedure and they state that I have no grounds for complaint.

I guess the next move is to refer to the Ombudsman.:mad:

Malky

Sarujima3 wrote: »

They assured me that they could match the offer being made by Halifax

Was that verbally or in writing? If it was in writing, how long was the quote valid for? Why has it taken you since April to realise something's wrong?

dmg24

Did the Abbey actually force you to take the increased rate?

dunstonh

I guess the next move is to refer to the Ombudsman.:mad:

No. You cannot go straight to ombudsman. You have to go through the complaints process with Abbey first. Only if they reject your complaint (which is likely as they have done nothing wrong) then you can take it to FOS.

When interest rates rise, the fixed rates go up with them. If your mortgage doesn't advance by the expiry date of the offer or the application is not in when the offer is withdrawn, then the rate gets changed (upwards or downwards).

Why did your mortgage take so long to complete? What held it up so much that it caused the old offer to expire and you be put on the next one? Who was responsible for that delay?

Abbey could be at fault but so could you. Rather than ranting about Abbey and going straight to complaint and wasting everyone's time, have you considered asking Abbey why the rate changed? Once you know the reasons, then you can decide what the best course of action is.

Sarujima3

Hi All,

I'll try to answer all the questions above in one post.

The quote from the Halifax was in writing and was obtained through a broker.

The agreement from Abbey was verbal, but I have a written apology from their branch manager stating that I was offered 5.14% after he spoke on my behalf to their customer retention team.

The Abbey did not force me to take 5.34% but it was the best rate on offer at the time.

The mortgage took only a couple of weeks to complete and I complained in writing to them in early May as soon as it became apparent that they were not going to meet their original agreement. It's taken since then for them to respond to my complaint despite numerous follow up complaint letters.

I was told that the fixed rate was 5.14% on the day that I submitted the application. They tell me that the rate increased while they were processing my application and that consequently I have no grounds for complaint.

I have been through Abbey's complaints procedure and they have provided their final answer. My understanding is that the next step is the Ombudsman service.

dunstonh - Sorry that you think I'm wasting everyone's time.

MUSTBEFUNNY_2

They aren't called the SHABBY ABBEY for no reason....:rolleyes:

UK007BullDog

Did you pay for the new deal or was it fees free/ no application fee?

reformedEffortMaker_2

Sarujima3 - i dont know much about mortgages, but surely they should be honouring the amount you applied for. If the rate was about to be withdrawn, then the advisor who processed your application would have been informed and should have allowed ample time.

Saying that, i am dealing with an equally frustrating situation with the Woolwich at the moment. In one of my conversations with them I was told that mortgage applications are farmed out to temping agencies and overseas to process internally and mistakes are occurring more often.

Good luck and let us know how you get on, whatever the outcome

Sarujima3

I was charged a set up fee of £999 which was the same fee that I would have been charged by the Halifax had I gone with their offer.

The advantage of staying with the Abbey was that I saved the exit fee and felt (at the time) since I'd been mortgaged to Abbey for 21 years that they were a reliable organisation.

UK007BullDog

If you paid nearly a grand at the TIME OF APPLICATION for the 5.14% rate and it was still offered then, then that is what you paid for and should get. The date you signed the application is KEY! If you signed the application AFTER the rate change then you are stuck with the higher rate.

Sarujima3

When I first met with the Abbey the 5.14% wasn't advertised as available. The branch manager telephoned the "Customer Retention" team in my presence and was told that they would offer me this preferential rate to retain me as a valued customer. This phone call to the retention team was repeated by the Abbey mortgage advisor in the branch two days later and I was told the same that they were offering me a special rate to stop me from moving to a competitor. I signed the paperwork there and then within 25 minutes of the phone call taking place.

I've referred my case to the FOS now, but I understand that it can take up to 6 months to get a ruling. I'll post their response once I have it....