New Mortgage Administration Fee - 4/12/06

Summary

With effect from 4th December 2006.
From 4 December, the name of our 'Repayment Fee' is being changed to 'Mortgage Administration Fee'.

For new mortgage applications received from 4 December 2006, the amount of this fee will increase in line with inflation. However, this inflation linked increase will not be applied until 1 January 2008. This change will apply to all Mortgages completing from 4 December 2006 onwards.

What's changing?
When a mortgage ends, customers are charged a repayment fee. The name for this fee is being changed from Repayment Fee to Mortgage Administration Fee for new customers.

The amount charged will remain the same - £225. However, from 2008, the amount may increase in line with inflation. The wording used on the Tariff to explain this is;

'A Mortgage Administration fee for providing, maintaining and closing your mortgage is payable at the end of your mortgage. The amount we charge you will not exceed this amount plus the annual increase of RPI calculated to the end of your mortgage.'

This change affects the following customers;
1. All new customer applications
2. All new customer applications where an existing customer is porting a product
3. All new additional loan applications

All other existing customers will not be impacted by this change.

New versions of the following will be made available via abbeyforintermediaries.com.
· The Lending Guide for Intermediaries

What You Need To Do

From 28 November 2006, inform your customers making Mortgage Applications that their mortgage offer will be subject to the new Mortgage Administration Fee. Confirmation of this will be included in their 'Offer KFI.'