Abbey started redemption process without my approval....

Mooogie

(sorry if this is on the wrong thread, i've also asked the question on the regular mortgage thread. Mods - feel free to move!)

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

esthomizzy

Sorry Moogie I just don't know the answer I'm afraid. I hope someone in the know appears soon to help. Good luck

Dithering_Dad

It seems a little underhand of your bank to decide that you should pay your mortgage off, just because there isn't much left - I had a similar problem when my bank decided to start charging me for a current account I wasn't using (I soon closed this down!)

As far as keeping the account open - the paper deeds are no longer needed as everything is stored electronically so you don't need to keep these under lock and key anymore. To keep your credit rating bubbling along, you would be better keeping a credit card (and paying it off at the end of every month) than an open mortgage account.

I'd just pay the redemption fee and remainder of the mortgage and end your dealings with the Abbey.

Kaz2904

What he said!

MoneySavingNovice

Write them a letter and state that you don't accept the charge as you have not made the request to commence the 'redemption process' thus you don't accept the redemption charge, and that you expect and require them to withdraw this at once. Give them a reasonable period to respond (say two weeks) In the meantime read your Terms and Conditions carefully.

When they respond saying 'no' write back stating that you continue not to accept the charge but they can continue with the closure subject to a you making a Complaint to the Financial Ombudsman Service, and that you will be expecting to win, your costs the charge and interest payments back if you win.

Make a complaint to the FOS. (My guess is that this will cost them far more to process than giving you a 'gesture of goodwill'

Good luck