Cheaper mortgage using 'home review'?

Q I have had a variable rate endowment mortgage for 20 years. Throughout that time, I have received several leaflets from Abbey National offering me a 'home review'. Essentially, this details information about home improvement loans, insurance products and other loans with the offer to follow up with a face to face interview if desired.

As far as I'm concerned this so-called 'home review' was nothing more than an attempt to sell further products and I am incensed that Abbey National has only now told me that I could have had a cheaper mortgage over a year ago by referring to this review.

In no way did the review spell out that cheaper mortgages were available and I only found out by chance from a radio chat show.

I sent a letter before the deadline last Thursday, but the only response was more forms to fill in to get 1% reduction off the base rate. What should I do?

CR

A As you have been paying a standard variable rate (SVR) all this time, there was never anything to prevent you from switching to another, cheaper mortgage - either with Abbey or another lender. This makes the usefulness of the home review a moot point, even though Abbey insists that this review gives customers the option of moving to one of a range of alternative mortgages.

But if you have been paying the higher of Abbey National's two tracker rates - which replaced the bank's SVR last March - you may have been paying over the odds for your loan. The recent Ombudsman's ruling stated that, despite Abbey's protests, the double-tracker rate constitutes a dual pricing policy and borrowers should be compensated accordingly.

As you sent your letter of complaint before Abbey withdrew its Classic Base Rate Tracker mortgage last week, you should receive a refund of interest in due course.

In the meantime, you should certainly consider remortgaging to a new loan for the remainder of your mortgage term - with rates as low as they currently are, you could substantially cut your monthly repayments by moving away from the SVR.

And don't restrict your choices to Abbey National. As you have no ties to this lender, you should choose the most suitable mortgage for you, not just the best one Abbey has to offer.