I had a mortgage with the Abbey and had to pay an early repayment charge with only 4 months left before the deal ended.

by , 16 Jun 2012

I was charged £2,259.00 early repayment charge and £225.00 repayment fee in 2005 when I wanted to move house. There was only 4 months left before the deal I had expired. Was it fair to charge me the full repayment charge please and can I claim any of it back?

Additional Information

added 16 Jun 2012...

Thank you for your reply. The mortgage was taken out in 2005, but was repaid in 2009. I have heard that even if the redemption figure is in the original agreement that it is considered excessive and possibly could be reclaimed, is this true?

added 16 Jun 2012...

My new mortgage was not renewed with Abbey/Santander.

Answers

add your answer here

They should have informed you to "Port" the mortgage to your new home and hence avoid the early repayment charges. Since this was such a long time ago and the bank has now been taken over by Santander I very much doubt it. It is a Spanish Bank now and Spainish economy is not doing good and UK investors and people like yourself could face heardship. You never the less need to approach the new bank first and then take your case to The Financial Services Authority if not satified. The Financial Services Compensation Scheme is able to consider claims for mortgage business conducted after 31 October 2004. There are limits to the protection available. Santander complaint line is:- 0845 600 6014 (select option 1) but you should also write to them at:- Complaints, Santander UK PLC, PO Box 1125, BRADFORD, BD1 9PG.
Hope this helps.

by annaa, 16 Jun 2012

It depends on the terms of the original agreement. In any even I think you are unlikely to recoup any of it now

by Jazzj, 16 Jun 2012

Hi like Annaa said was there a reason why you couldn't port the mortgage ?? Abbeys products have nearly always been portable that should have been in your t and c's they are justified to charge the erc , when you take a mortgage product the lender gives you their commitment to give you that rate for a particular length of time as you have used those funds they cannot give them to someone else so in return they as for your commitment to keep the funds for tha length of time if you decide not to then they charge you for their loss but porting should have been an option ?

by donnaha63, 17 Jun 2012

Santander should still be your first port of call. Santander gained a foothold in the UK when it bought Abbey, Britain's second-largest mortgage lender, for £9billion in 2004. It was rebranded as Santander in 2010. They, like all financial institutions must keep all records for, I believe, 7 years AFTER your relationship with them has ceased. You still have hope - be it very little. Barclays took over The Woolwich in 2000, but their mortgage arm still trades under the name of The Woolwich. There is something about 15 years time span (may be for tax purposes) that many banks have done this - keeping the name of a part of the company be it in the public eye or behind the scene. Natwest has been somewhat very transparent on this. Providing you've taken a loan, credit card or mortgage in the last 15 years then maybe entitled to compensation. This even applies if you've paid them off. see:- http://www.hidenda.com

by annaa, 17 Jun 2012

Posts within the money.co.uk community represent the views, experiences and opinions of members and experts only. They should not be taken as financial advice and should not be followed without further research.

Get our free money saving newsletter
Join over 450,000 other subscribers who grab our expert money tips, unmissable money guides & hottest bargains each week in our special email...

More Questions on Mortgages