Shabby Abbey blunder adds 15 years to mortgages

[mistie]

Shabby Abbey blunder adds 15 years to mortgages:::


http://www.everyinvestor.co.uk/every...ges/e/155-1129

[Amethyst]

Thousands of Abbey customers have been forced to spend up to 15 additional years repaying their mortgage, after the bungling bank failed to notify them of changes to their repayments.

The mistake could add thousands of pounds in interest to customers’ total bills. The regulator has confirmed many may be entitled to compensation, but warns they only have until October to come forward.

The problems started when Abbey repeatedly extended mortgage periods – and the size of repayments due – following interest rate fluctuations between the late 1980s and 1993, but failed to explain this to all of its repayment mortgage customer

Those affected need to come forward
The Financial Ombudsman Service (FOS) ruled that Abbey had failed to properly explain to customers that the length of their mortgages could be extended if they did not increase their monthly payments.
It adds that “several hundred” Abbey customers had already come forward, as the October deadline looms ever closer. If you are one of those affected, make sure you contact the regulator before time runs out.

Those who have taken out a mortgage recently needn’t worry about encountering similar problems, as the length of a mortgage is generally fixed now, with repayments changing according to interest rates.

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