Effective from 5 October 2007

Changes to Abbey's Early Repayment Charge

Overview 

To ensure we continue to treat customers fairly, we have reviewed the levels of fees and charges. The review centred on improving transparency for both Intermediaries and their clients and to achieve greater standardisation within market. Therefore, we have conducted a review of the current Early Repayment Charge policy and made significant changes.

The new ERC charge structure – new customers only!

The new ERC charging structure will now be expressed as a percentage of the clients outstanding mortgage balance at the time of redemption. This will be shown on both the clients KFI and Offer generated at application. Charges will differ by product type (i.e. fixed and variable) and term. These charges will be review annually.

Fixed Rates:

Please note, the new Early repayment structure will only apply to new customers or existing customers who take additional lending (product dependent) or a product switch. Benefit solution ERC’s associated with products such as Premier, Homebuyer and Remortgage will be continue to be a charged on top of the percentage ERC.

With this new framework, we are confident that we will eliminate previous confusions and bring Abbey’s Early Repayment Charges in line with the rest of the market.