Abbey started redemption process without my approval...

Mooogie

I'm like a lot of people and have left under £50 in my mortgage account so the title deeds are being kept in the 'safe' care of my lender (ie Abbey) and in case I ever want to re-mortgage etc.. I've read other pros but cant remember them all.
However, the Abbey are now getting a bit annoyed and have just sent me a letter saying they have started the "redemption process" and have debited my account with their redemption fee of £99. So, the outstanding balance of my mortgage has just jumped up by £99 without my approval to start the redemption process....
1 - can they do this?
2 - what advice would you give?
3 - what are the other pros of not redeeming?

Thanks in advance,
Mooogie

dunstonh

3 - what are the other pros of not redeeming?

None at all.

Many lenders dont hold onto the actual deeds any more anyway (electronic methods taken over) and having £50 on a mortgage would actually slow down a remortgage if anything. Not speed it up.

Holding a small amount of debt is all really pretty pointless nowadays.

My gut feeling is yes they can do it because if the charge against the property has expired or about to expire then its time up (i.e. if you did a 25 year mortgage and redeemed in year 20, then in year 25 the mortgage was due to be paid and they are complying with the original terms).

My advice would be that it isnt worth the hassle to fight it as its really a non issue.

Mooogie

thanks for the reply. But my mortgage has still has around 13 years left of it's term, so i don't think they are doing it based on the 25 year thing you suggest.

Dan_Collins_2

Well as long as you keep up the repayments then I cant see how they can do this. I am assuming you have it on interest only and you pay the interest each month.

However if they m ade an arrangement with you that you pay the interest per year and say £10 and they keep the deeds then they probably can. Why dont you call them and have a chat!