Santander Miscalculated Mortgages
If you borrowed over £100,000 on a mortgage with Santander or their Abbey or Alliance & Leicester brands before 2010 and you haven’t remortgaged away from them since Beat the Banks are currently offering an entirely free mortgage audit. We can also extend this check to cover mortgage borrowing taken with all three, providing you took your loan after 2000, it was originally more than £100,000 and not repaid within 7 years.
Our audit covers interest only, repayment and buy to let mortgages. Both Abbey and Alliance & Leicester sought to pursue rapid growth with computer legacy systems that were well past their sell by dates. Just one reason alone why your mortgage may have been substantially miscalculated.
Abbey, originally founded in 1944, became the first building society to de-mutualise away back in 1989. In 2000, it even launched its own online bank called Cahoot. The bank set on the acquisition trail all through the 1990’s and ever hungry for profits they entered into the wholesale loan market at the start of the millennium. This was to prove their undoing. Losses ensued and their image took a pounding. In early 2004 Banco Santander came calling and by the end of that year, the takeover was finalised.
Abbey had an aging computer system, but it’s wasn’t until midway through 2008 that their all accounts were finally merged on to Santander’s Partenon system. In between times in 2007, they were forced to admit to extending lending terms on some mortgages taken in the 1980’s. Put simply, their computer system had been unable to cope with the vast interest rate fluctuations during that decade. Abbey chose to hide the problem, which in some cases increased customer mortgage terms by as much as 15 years. Incredibly in four years running from 2007 to 2010, they were given the unenviable title as the UK’s worst bank for customer service.
Alliance and Leicester was yet another building society that demutualised. In 1997 it finally entered the FTSE 100 Index. Aggressive growth was their strategy and built on a similar model to that of Northern Rock, where funding was sourced from the capital markets and in turn bundles of mortgages sold off as bonds to other banks and investors all over the world. In an effort to boost profits, they decided to enter into the 125% mortgage with a product mirroring Northern Rock’s infamous “Together” proposition. They also moved onto the sub-prime market with a deal funded by Lehman Brothers.
Reducing liquidity lurked in the shadows behind years of increasing profits. In late 2007 it looked like the UK Treasury would have to come to the rescue with a £3 billion lending lifeline. At the start of 2008, they appeared to have secured a lending credit line until the end of the year. The joy was short lived and in July 2008 they accepted a takeover from Santander that was then finalised in October of that year.
Like Abbey, Alliance & Leicester had an old and failing computer legacy systems. This caused a full merger into one brand to be delayed until the middle of 2010. Up until that point A&L retained its own and completely separate banking license.
For more information on how to receive our entirely free mortgage audit, please contact Beat the Banks on 01382 200474 or for free on 0800 193 1234. Or if you live locally, why not simply pop into our office with any of your mortgage paperwork and we can start the audit process immediately. Our hours are 8am-8pm weekdays, except for Fridays when we close at 6 pm. On Saturdays it 10am-2pm.