Santander to take over High Street banking names

It has been revealed that a number of well known financial names will disappear from the High Streets in the UK from next year, when they are rebranded in the name of the Spanish financial institution that owns them. Read more

Tags: rebranded, spanish bank santander, bradford & bingley, santander, Street banking names, uk, abbey

More being saved by younger Brits

Although the current financial and economic climate has made it increasingly difficult for many of us to put money aside into savings, a recent report has indicated that younger people in the UK appear to now be saving more. Read more

Tags: younger people savings, Recent research, savings amounts, living costs, abbey, finance, report, age

New packaged accounts launched by Abbey

Spanish owned High Street bank, Abbey, has recently launched two new packaged accounts for its customers, and according to reports has started a new packaged current account war amongst banks that are vying for the business of consumers. After taking a 28% share of the mortgage market this year, the ambitious bank is now looking to increase its share of the current account market by offering these packaged accounts, which offer a range of benefits for consumers. Read more

Tags: abbey, mortgages institution, current account war, biggest criticism, Payment systems, fee, official, bank accounts

Abbey applies charges to accounts in credit

The High Street Spanish owned bank, Abbey, has found itself in trouble after a number of customers complained about having various charges applied to their account even when they were within their credit limits. According to reports a number of customers have found different charges applied to their bank accounts, ranging from a few pence to pounds, and none of the charges have been justified. Read more

Tags: pence, letter, abbey, money, issue, Debit card, situation, bank accounts

Man claims his Abbey account was frozen in revenge

A man who gave a low rating to an employee at a call centre at Abbey bank said that he had his account frozen out of revenge. The customer of the Spanish owned bank said that he had found the customer services representative at the call centre to be ruse and arrogant, and when he had been asked to complete a survey on his experience he gave the lowest scores to the employee, which he felt was justified. However, he says that as a result his account was frozen in revenge. Read more

Tags: Banking, abbey, bank account, massive inconvenience, business, standing, revenge, money back

Abbey launches packaged current accounts

Abbey has recently joined the long list of banks now offering customers the opportunity to sign up to a packaged current account, and officials from the bank are hoping that on top of the other achievements that Abbey has enjoyed this year, such as the acquisition of Bradford and Bingley and a larger share in the mortgage market, it will also be able to lure customers away from other banks by offering the packaged current account. Read more

Tags: breakdown cover, bradford and bingley, lloyds, abbey, bradford & bingley

Under 35s facing credit card and loan debt

A new study has found that people under the age of 35 in Yorkshire are having to spend £160 a month servicing their debts.

Skipton Building Society reports that after paying rent and mortgage costs, the single largest outgoing for people within this group is paying off credit card bills and loan repayments.

The firm’s research also revealed that 73 per cent of people under the age of 35 in Yorkshire have some form of debt, with the average person owing £8,477.

However, a further 11 per cent were found to owe more than £20,000.

Jennifer Holloway, head of media relations at Skipton, said that it is “definitely time for a wake up call” for many people, given that they may have to work longer and earn more to be able to retire comfortably.

“And even though it may seem daunting, it could be easy for those in the red to join those in the black,” she commented.

In related news, Abbey recently reported that millions of people were looking to take advantage of balance transfer deals and switch money owed on one credit card to another during the first three months of 2008.

Tags: North Yorkshire, month, 35s facing credit, abbey, personal finance, credit card bills, finance, loan

Link between base rate and mortgage rates “severed”

An expert has suggested that mortgage rates are no longer influenced by the Bank of England’s base rate of interest.

Melanie Bien, director of Savills Private Finance, said that despite the Bank’s monetary policy committee choosing to maintain the base rate at 5.25 per cent, Abbey has announced its mortgage rates will be rising from next week.

“It proves that the connection between base rate and mortgage rates has been all but severed as lenders look to improve margins rather than market share,” she claimed.

Consequently, even if the base rate comes down further this year, this may not feed through to mortgage products, the expert suggested.

In order to make the most of the best deals currently available, need to “act quickly” before lenders remove them from the market.

Paul Holmes, chief executive officer of Firstrung, said that people are unlikely to be able to take out 100 per cent-plus mortgages any more.

However, despite some people criticising such products, Mr Holmes said that they were “very good” in some circumstances.

Tags: Link, england, Savills, Firstrung, abbey, week, market, order

Only five% of first-time buyers used 100% plus mortgages

Despite being “very good” for first-time buyers, only five percent of them used the 100 per cent plus mortgages to get themselves onto the property ladder, one financial expert has claimed.

According to Firstrung these 100 per cent plus products were “niche products” which never became as popular as people made out.

Paul Holmes, chief executive officer of Firstrung, said that the media tried “to portray that people went out and had a hundred per cent mortgage on their property … they didn’t. They had a 95 per cent mortgage, and could take a loan up to 30 per cent or £30,000 – whichever was greatest”.

Firstrung said that the majority of first-time buyers who took 100 per cent-plus mortgage product took a 95 per cent mortgage and a ten per cent personal loan.

Mortgage lenders Northern Rock, Alliance & Leicester, Birmingham Midshires and Abbey have all withdrawn from the 100 per cent mortgage market.

These lenders have begun to require borrowers to supply the deposit on a new home themselves.

Tags: abbey, alliance, Paul Holmes, ladder, loan, plus, cent plus mortgages, Birmingham

Shopping around can improve “financial fitness”

Consumers can improve their “financial fitness” by shopping around for the best deals on mortgages, credit cards and insurance, claims one financial expert.

Abbey said that there is certainly more that most consumers could do to ensure their finances could be improved and looking around for a better deal could make a big difference to the amount of money paid out.

Nici Audhlam-Gardiner, head of mortgages with the company, said: “It’s all about discipline, in the same way that you can be physically disciplined if you decide to get physically fit.”

She added that it is unlikely that someone who set up a bank account ten years ago is still receiving the best interest rate on the same deal.

Looking around for different offers can make a “big difference on your month by month basis, in terms of how much you’re earning”.

According to research conducted by ICM for Abbey, 21 per cent of people renewed their home insurance without shopping around and four per cent do not have any home insurance at all.

Tags: head, abbey, best interest, credit, expert, Financial economics, Nici Audhlam Gardiner

Abbey slated over 125% mortgage

Amidst the turmoil and chaos that has hit the financial and mortgage markets over the past month, high street bank the Abbey has announced the launch of a 125% mortgage deal for first time buyers and other property purchasers, and this move has been strongly criticized by many financial professionals.

The mortgage allows consumers to borrow over and above the value of the property, but experts state that many consumers could find themselves left in negative equity as a result of taking on these loans.

Experts state that if consumers default on the 125% mortgage they could quickly find themselves locked into negative equity, and this could be further fuelled if, as expected by many analysts, property values in the UK tumble over the coming months. The government has been urging financial institutions to be more responsible with lending in light of the current financial situation, and Abbey is now being accused of ignoring this advice.

The Abbey is offering consumers the opportunity to borrow 100% of the property value, and an additional £25,000 on top. The recent chaos with Northern Rock has increased concerns over irresponsible lending by financial institutions, and many experts are now accusing the Abbey of further fuelling the debt crisis in the UK by offering this type of mortgage in the current economic climate.

Officials from the debt charity Credit Action have commented on the availability of this 125% mortgage loan, and one official stated that the loan posed ‘real dangers’ to borrowers, adding that anyone that decided to take on this type of loan would have to be ‘incredibly bold or incredibly stupid’.

Tom Smith
24th October 2007

Tags: 125%, first, cost, property, buyers, house, debt, time

Abbey first time buyers turn to family

First-time buyers (FTBs) are increasingly turning to brokers rather than friends and family for mortgage advice, Abbey said today.

According to research from the lender released today, 23 per cent of homeowners consulted those close to them while buying their first home – compared with 13 per cent who asked a broker for advice.

However, 28 per cent of the first-time buyers of today – those in the 25-34 age group – said that they used a broker: the largest proportion across the demographics. This could signify an increasing dependence on professional rather than personal mortgage advice.

By way of comparison, just two per cent of OAPs consulted a broker over their first property purchase.

Managing director at Abbey Ricky Okey said that the research was “promising”, because it showed “a shifting attitude of young first-time buyers who are waking up to the benefits of seeking advice from intermediaries.

“Brokers can build on this changing attitude to become a positive driving force in the first-time buyer market.”

Tags: young first-time buyers, abbey, Driving, demographics, comparison, driving force, advice

Abbey customers find mortgages been extended

There was a shock in store for many customers with the Abbey bank last week, as an oversight resulted in many customers’ mortgages being extended by years without them even being informed about it.

The blunder meant that thousands of homeowners have seen their mortgage repayment term extended, in some cases by up to fifteen years. This resulted from the bank failing to make changes to customers’ repayments, and meant that the term of the loan was increased by a considerable amount of time.

Rising interest rates in the 1980s and 1990s resulted in the customers’ paying more in interest on their mortgage, which meant that out of each repayment a higher amount was being applied to the interest. However, because the bank failed to increase customers’ repayments less of the capital was being repaid. As a result of years of underpayments, many have now found that they will be lumbered with a mortgage for up to fifteen more years.

Abbey should have contacted mortgage customers to explain that the rise in interest rates meant that their repayments would have to increase to enable them to pay off the loan within the arranged mortgage term.

However, the bank did not do this, and as a result customers continued with the same repayments, oblivious to the fact that they were not paying enough to cover the capital and interest repayments without extending their mortgage term.

Following a flood of complaints from those affected, an official from the Financial Ombudsman Service stated: ‘This is an issue specific to Abbey because it was not explained to the customers and they were surprised to discover they would have to pay over longer terms. Those affected could still be entitled to compensation.’

Tom Smith
15th July 2007

Tags: abbey, interest, mortgage, rates, customers

Parents feel the squeeze in the summer holidays, poll finds

According to an Abbey poll, British parents are finding the summer holidays financially draining.

The recently released figures show that keeping the children entertained during the long school break can cost families thousands of pounds each. In total, summer holidays may have £5 billion spent on them this year in the UK.

Abbey found that over a third of families rely on others to take care of childcare, and a fifth will cut down on working hours

Steve Shore, head of banking at Abbey said: “It’s important that families try to set aside some extra cash in advance of the summer holidays.”

Head of savings Reza Attar-Zadeh agreed: “Just putting a small amount aside each month into a savings account can provide enough to cover the cost of childcare, holidays abroad or trips out for the family.”

The bank recommends families to prepare in advance for the holidays, suggesting a figure of £50 per month to be put into accounts set up specifically for the summer break.

Tags: Travel and Tourism, Working time, cost, School holiday, abbey, savings account, british parents, summer break

Bank may have equipment seized

A branch of the Abbey bank in Chorley, Manchester, has been threatened by bailiffs following its failure to adhere to a court order and repay past overdraft charges to a customer that took it to court.

Sam Umaar sued the Abbey over the repayment of illegal bank charges amounting to nearly £3000. However, despite a court order instructing the bank to make payment to the customer no action was taken.

Sam Umaar sued the Abbey over bank charges that amounted to £2493. These were charges that the bank had applied to his account for exceeding his overdraft limit – charges that have now been described as unlawful and unfair by financial regulators in the UK. Mr Umaar’s case went to court in June, and because the Abbey did not show up to defend itself the judge granted an additional £276 to Mr Umaar, bringing the total judgement to £2769.

However, despite the court order the Abbey still did not pay up, and now bailiffs have visited the branch and given officials seven days to pay up. If this is not done the bailiffs state that they will seize equipment to the value of the sum owed. This has been done in the past with other banks, where equipment such as computers, faxes, printers, and other office and banking equipment has been taken in order to make the bank pay up in accordance with the court order.

Mr Umaar stated: “It’s ludicrous that the Abbey haven’t paid up when they know they have to.”

He added: “The bailiff says I will get my money – it is just a matter of when.” Officials from the Abbey have stated that the cheque has now been issued to Mr Umaar, and that bailiffs have been notified of this.

Tom Smith
11th July 2007

Tags: fees, charges, bank, costs, judge, bailiffs, cheque, abbey

Smoking ban might help first time buyers

One unexpected group to benefit from the smoking ban might be first time home buyers, it has been suggested.

Money saved from giving up smoking might be used towards mortgage deposits, according to Abbey National.

In fact, according to the building society 43 per cent of first time buyers would give up nicotine to gain a foothold on the property ladder.

Abbey estimates that giving up smoking would save £1,288 per year, a figure which would rise to over £2,500 if a couple who smoked both gave up; mortgage broker Charcol also estimates that someone with a 25 year repayment loan could cut eight years from the total by using cigarette money to pay it back.

According to Abbey’s Nici Audhlam-Gardiner: “It really is the ideal opportunity to save up some hard cash for a first home. So, it’s time for all those first time buyers that told us they’d quit cigarettes to get on the housing ladder, to put their money where their mouth, or should I say their cigarette, is.”

The smoking ban, introduced by the government on July 1st, made virtually all public places and workplaces in the UK smoke free.

Tags: smoking, giving up smoking, mortgage deposits, Nicotine, is."The smoking ban, first time home buyers, abbey

Bank paid out saver’s money to wrong family

A bank has faced major embarrassment after paying out the savings of a pensioner to another customer’s family – under the assumption that the customer was dead.

The pensioner, who had £3000 in savings with the Abbey, discovered when she visited the bank that her savings had been paid out and her account closed because her records stated that she was dead.

The 77 year old customer stated that she visited the bank after her statements stopped arriving in the post. She stated: ‘I took the matter up with my local branch in Telford and they asked me if my husband had perhaps closed it.

I replied it was unlikely because he passed away 25 years ago. The young lady serving me began typing away on her computer but all of a sudden looked puzzled and told me that according to their records, I was dead. She went a bit pale, either because she was embarrassed at such a mistake or she thought she was seeing a ghost.’

After investigating the bank discovered that a customer with a similar name and of the same age had died. However, in error the wrong account had been closed and the £3000 had been paid out to the family of the deceased customer. The customer has been told that she will be getting back her money along with some compensation.

She stated: ‘Abbey have told me they have reclaimed my savings and have pledged to give me some compensation as a result of all the fuss caused. But I’m 77 and a widow, so it doesn’t do my health any good when I’m told my £3,000 has disappeared because I’m dead. It has taken a lot of time, effort and money, what with phone bills and bus fares to Abbey and my local library to process all the paperwork.’

Tom Smith
3rd July 2007

Tags: money, accounts, funds, dead, abbey, savings, family, mistake

Neighbours cost homeowners £93.4m

Brits spend more than £93.4 million each year on damage caused by their neighbours.

New research by Abbey has found that around 543,000 of us have to endure household damage by our neighbours every year.

Londoners are the worst affected, with ten per cent encountering damage, while people in Wales are the least affected.

The average insurance claim made after a neighbour has caused damage is around £172 but one in twenty is hit for £1,000 or more.

“Not all damage caused to people’s homes by their neighbours is malicious. In many cases this type of damage is accidental. However there are often misconceptions about whose insurance is to be used to claim for it,” explained Prasad Shastri from Abbey.

“It is always the policy holder of the damaged home that will need to submit a claim. For example, if your neighbour was to cut down a tree that accidentally breaks a window, it is only you that can claim for damage to your property, not your neighbour, highlighting how important it is for you to make sure your insurance covers you against accidental damage caused to your property by other people.”

Homeowners are also warned by Abbey that buying insurance on price alone can be dangerous as it is important to make sure that you have adequate cover for your home and its contents.

Tags: Wales, price, window, Insurance, Household, misconceptions

Borrowers offered huge mortgage deals

Borrowers can now take out a mortgage of up to six times their salaries, according to recent reports.

Mortgage lenders are now willing to splash out huge loans to allow desperate first-time buyers to get on the property ladder, with soaring property prices and a lack of affordable housing becoming major stumbling blocks.

The Daily Telegraph claims high street names such as Alliance & Leicester, the Royal Bank of Scotland (RBS) and Northern Rock are now lending huge amounts compared to a person’s salary.

Nick Gardner from Chase De Vere Mortgage Management told the paper: “We have done deals for more than six times income with Alliance and Leicester, and very near that with Abbey and Intelligent Finance.”

But borrowers must still meet strict “affordability criteria”, claim the banks, meaning borrowers must be on high-end salaries, sometimes as high as £100,000 per year, or take on mortgages of a long-term fixed rate.

Of course, critics argue this means people who can normally afford a mortgage anyway will be the only ones to benefit from the deals.

Tags: huge loans, mortgage management, abbey, daily telegraph, Affordable housing, long-term fixed rate.Of, major stumbling blocks.The, property prices

Storms boost insurance claims

Britain is currently being ravaged by severe storms and thousands of people have woken up to find damage to their homes and property.

Weather experts are already predicting that there is worse to come in 2007 and hundreds of millions of pounds will be spent on insurance claims.

However, Abbey is warning that 36 per cent of all homes in the country are not insured at all, meaning the owners will be forced to foot the bill should the worst happen.

Speaking in December, Prasad Shastri from Abbey gave homeowners a warning that has been vindicated in the early part of 2007.

“Already we have seen a significant increase in storm related claims within the last month and this is expected to continue into 2007,” he said.

“Worryingly many people do not protect their homes properly despite the severe costs that storm damage can cause.”

Research from Abbey shows that 620,000 insurance claims are made every year as a result of storm damage, with estimates that each individual claim is worth £522.

Weather experts have hinted that another round of storms may hit the UK as early as next week and homeowners are advised to check their insurance policies and ensure that they provide adequate cover.

Tags: home insurance, abbey, finance, severe costs, Abbey gave homeowners