Hi,

Can someone please tell me how to calculate losses to the mortgage company on an early redemption of a mortgage for £41055 which was fixed at 7.9% interest for 7 years but was redeemed 5 years and 10 months early??

They charged me an ER fee of £2938.09, also they added back a 'cashback' charge of £2018.75 which i think was the original 5% deposit which we didnt pay because it was a 100% mortgage. What can i claim?

Thanks

MODERATED please do not post the same question in 2 different threads.

Hi,

I was a mortgage advisor for Abbey for 5yrs(until i left this January!)

I cant help you to reclaim any fees but i can help shed a little light on how these were calculated,Hope this helps you!

Firstly,Abbey dont do 100% mortgages,, It sounds as though you have been offered a 5% cashback mortgage,with the 5% being used towards the deposit.

Cashbacks are always reclaimed if you come out of the deal early!

I dont know the purchase price etc in your circumstances so heres an example to help you calculate it yourself-

if,say,you wanted to buy a house for 100k--you would need 5k depsoit and 95k as mortgage--you would receive £4750 cashback--this is 5% of the 95,000 you borrowed.

On a fixed rate the ERC is calculated using a set number of days interest( you can obtain this form the mortgage centre over the phone or by refering to you original mortgage paperwork)

For example- you mortgage could have 260days as the erc. if your daily interest amount is £7.20 then £7.20x260days=£1872--

Different mortgage deals have different ways of calculating the erc,but i think this is how yours has been made up-

if you have incurred this erc because you have moved house,you should have had the option of taking the deal with you ( as long as you agreed to take the deal and not reduce the mortgage balance then the erc would have been taken but returned in full providing the new mortgage completed within 3months of redemption/pay off.) If you have incurred the erc because you chose to remortgage ,the lender will claim you have reneged on the agreement and are therefore justified in charging you.

Good Luck !

Thanks for that info.

My mortgage ended early because i couldnt afford to pay it as my partner at the time (joint on the mortgage) walked out at the same time i was made redundant so couldnt afford to pay it(i was only 20 at the time).

The circumstances i feel were out of my control and Abbey refused to help in any way.

I feel extremely wronged and feel the sold the house for what they could then just made up things to deduct from the balance so they wouldnt have to pay me what was left after paying off the mortgage. For example their 'admin' charge was ridiculous.

I have sent them a letter so will wait and see what they say.

Well they didnt reply to my letters so started a claim against them and still have not had any reply. They were not able to provide me with any info, closing redemption statement etc..

They filed a defence yesterday and i am just completing the allocation questionnaire.

I will be following this with interest as I'm sure a lot of people with. As far as I can see, you are the furthest ahead with claimng the ERC back.

Has anyone filed a claim yet?

Hello,

Can anyone tell me what a pre-action protocol is please? It is a question on the allocation questionnaire and i cant find any info on it.

Thanks

Hello,

 

Can anyone tell me what a pre-action protocol is please? It is a question on the allocation questionnaire and i cant find any info on it.

 

Thanks

I am not sure, but I would guess that you need to prove to the court that you ahve given the defendant a reasonable amount of time to consider your claim amd provided enough information and your grounds of claim, for their response to be informed, and that response has left you with no alternative but to take court action. So basically prelim,wait 14 days then LBA wait 14 days then claim.

I got hold of the redemption statement off the solicitors and there are several items i am not sure about. Can anyone tell me what I can request proof of costs or reclaim out of these?;

Admin Fees £205

Property Sales Admin charge £500

Agents commission £1183.23

Cashback charge £2018.75

ERC £2833.01

Bear in mind this was a repossession so it was a forced redemption and they never gave us a breakdown of the 'admin' costs etc.

Thanks

I got hold of the redemption statement off the solicitors and there are several items i am not sure about. Can anyone tell me what I can request proof of costs or reclaim out of these?;

 

Admin Fees £205

Property Sales Admin charge £500

Agents commission £1183.23

Cashback charge £2018.75

ERC £2833.01

 

Bear in mind this was a repossession so it was a forced redemption and they never gave us a breakdown of the 'admin' costs etc.

 

Thanks

bit unsure what you are actually claiming but you need full info on a SAr before you claim anything. You need to be sure you know what you are saying is unlawful else you will fail, what stage exactly are you at?

Still not had a reply to any of my letters to Abbey. I am awaiting a court date at the moment so who knows??

Hi Annalh

I'm in the process of claiming my ERC from Halifax. They have acknowledged with intent to defend. After ignoring all letters.

Can you tell me what have the Abbey put in their defence?

Zoot

Basically it goes like this...

'we deny every allegation set out by the claimant. We admit the claimant has a mortgage account with us (I havent done for 5 years!!), There was a term in the contract which made the claimant liable for any charges in the event the defendant chose to redeem the mortgage. The claimant was aware of the terms when taking out the mortgage and the terms were clearly explained, etc etc.'

A load of waffle really, not a real argument for a defence!

Nothing to lose any sleep over then lol!

Do Abbey generally drag things out this far for other charges do you know?

 

Do Abbey generally drag things out this far for other charges do you know?

Oh yes, Abbey are a PITA to deal with I believe. As bad as Lloyds TSB!

Lloyds have been good for me dolly, vey quick.

Abbey on the other hand are so frustrating. I have 2 other claims with them and all 3 are being dragged out and delayed as much as they possibly can.

As far as i can tell everyone has had this experience with them so dont worry, its just a waiting game!

Lloyds have been good for me dolly, vey quick.

 

really? I am expecting a long, drawn out battle with them from what I have read. Did you get to AQ stage?

Yes on one account, no on another. The only probs I had with them was because i was claiming for a joint account with an ex and they wanted to be sure ex was agreeable to any settlement. They offered full settlement really quickly, straight after they put in a defence, which i think they only did because they had to, to give them more time, because I did tell them i wanted them to pay the money into my bank account at first (with another bank), which they couldnt do, but they were very helpful and quick to respond. I dealt mostly with their solicitors via email, so if you can i would email them as much as poss, chase them all the time and you should get a result quite quickly.

From what I can tell it depends on which firm of solictors you get as to whether they are communicative or not so fingers crossed we get the good ones as I fully intend to let them know that I know what I am doing (bluffing, of course )

Can I just ask you (as we are so already off topic with your ERC thread!), did you have an overdraft on the account and if so, they didn't call it in beforehand did they?

No, both accounts were closed years earlier.

I can concur that Abbey are real pains in sofar that they drag things out till the death.

They have on two occassions made things extremely dificult and gone to court, to overturn previous automatic wins for the claimant, but then gone on to settle soon afterwards.

Certainly in regards to bank charges, we will get them all in the end. Mortgage claims, are somewhat different.... or there again, maybe not!!

Best of luck.

Anyone else trying to get Mortgage redemption fees back from Abbey? I ve been looking at all the threads but its gone very quiet, no-body seems to be posting much these days.

Abbey have gone quiet on me. I am waiting for a court date and just wondered if anyone else is having a similar experience with them?

Also has anyone claiming mortgage erc's back from a different bank got a court date yet? or even been to court??

Anyone else trying to get Mortgage redemption fees back from Abbey? I ve been looking at all the threads but its gone very quiet, no-body seems to be posting much these days.

Abbey have gone quiet on me. I am waiting for a court date and just wondered if anyone else is having a similar experience with them?

 

Also has anyone claiming mortgage erc's back from a different bank got a court date yet? or even been to court??

Hi, there is a lot more posting going on re mortgages but there are a lot more threads - so the subject is not as condensed as it was before, ther has been a judgement by default dashgnail got thatagainst Mortgages PLC and a few more have got to the money claimstage. Have you had a defence and what are your timescales?

Best Wishes

HI THERE I AM GOING AFTER ABBEY MORTGAGES. I THINK WE BOTH HAD THE SAME MORTGAGE DEAL SOLD TO US 7.95% INTEREST FOR 7 YEARS. WE LEFT AFTER 2 YEARS AND WERE CHARGED £9000. bit i am relying on is a pice of my redemption statement which refers to my 270 days erc as "penalty period". THIS WAS NOT GIVEN TO ME BUT I FOUND IN A BOX IN THE ATTIC. I AM JUST ABOUT TO SEND OFF MY PRELIM LETTER.

LETS KNOW HOW YOU GET ON AND IF YOU HAVE YOUR REDEMPTION STATEMENT FOR THIS MORGAGE. GOT TO GO NOW WILL BE BACK LATE HAVE TO PICK MY LITTLE BOY UP FROM SCHOOL.

Just had this letter from DLA Piper this morning;

Dear ANNALH,

The basis of your claim appears to relate to your assertion that the product related charge (PRC) is unfair or a penalty. Given that the PRC was calculated on the basis according to the terms and conditions of the mortgage you took out with our client, we are not instructed to refund or settle the claim.

Furthermore, as outlined in our defence, the PRC is a charge designed to cover the costs to our client of funding the products and redeploying those funds on early redemption. Accordingly, it gives a genuine pre-estimate of loss and cannot be deemed to be a penalty.

We should add that if you have any doubts or concerns regarding your legal position you should consult a solicitor or the citizens advice bureau.

DLA Piper.