View more on these topics

Abbey application fee policy angers broker

A broker who found his client had been charged 90 after their case was declined has slammed Abbey’s valuation administration fees.

Peter Stokes, a broker for Davidson Deem, says: “I had an online agreement in principle with a client for an Abbey mortgage. After 24 hours the deal was declined but Abbey still collected 90 for the declined application fee.

“This is wrong – someone should not be charged to cover the administration costs of a decline. Abbey is shouting from the rooftops about its riskier products and with these it must expect a higher rate of declines. Hiding the administration charge is not treating customers fairly.”

He adds: “Brokers should be aware of this ‘suck it and see’ policy because if a case is declined their customers need to know they still have to pay a 90 fee with Abbey.”

A spokesman for Abbey says: “Once this client got a decision in principle the ball was already rolling.

“It’s one of those things – an unfortunate situation. We need to cover our costs. It is our policy to recoup some of our administration fees. That is why there is the 90 levy.”

Recommended

End of the B2L honeymoon in sight

Kevin Paterson takes a weekly look at the latest developments in the market and brings you what’s hot and what’s not in the world of mortgages

The Mortgage Mole

Digging the dirt in the mortgage world.

Goldsmith Williams sponsors MS Summit

Conveyancing firm Goldsmith Williams is to sponsor Mortgage Strategys Packager Summit in the south of France. The two-day event is expected to welcome around 75 packaging companies which will chew over future developments in the packagers market.Running between January 24 and 26, the Nice-based summit will also see the launch of Mortgage Distributor Mortgage Strategys […]

Newsletter

News and expert analysis straight to your inbox

Sign up