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Row grows over Abbey Nat &#39tie-in priority treatment&#39

Brokers are accusing Abbey National of continuing to put priority on mortgage applications which take the lender&#39s house and contents insurance.

Intermediaries want Abbey to admit that this practice is common policy and not “an isolated incident” as it claimed after a report in Money Marketing on June 13.

IFA Libran Investments adviser Paul Ferguson says Abbey has been pursuing a policy of prioritising those who take its insurance for at least two years.

A Wimbledon IFA says he was told a remortgage application would be looked at in two to three days, rather than the standard 10 days if insurance was included.

Other brokers say they have been told Abbey will push through cases which are borderline on criteria if clients take out insurance or payment cover.

Mortgageforce managing director Rob Clifford says: “I think it is outrageous.”

Which? Magazine principal researcher Melanie Green says: “This is cashing in on the situation that purchasers find themselves in trying to get the house and mortgage they want. It is almost bringing in insurance tie-ins, a practice we hope had stopped.”

Abbey National head of business sales operations Len Wakelam says: “This is definitely not company policy. We deal with all applications on individual merit.”


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