CAM bank mortgage now Sabadell help please.

Good evening,

I bought an apartment on AL Andalus Hill Vera back in 2006.

I took on the developers (Keymare) mortgage with Cam Bank.

In 2011 Cam Bank was taken over by Sabadell Bank.

I want to part redeem my mortgage ,but it appears that Sabadell want to charge 1% commission .

In my original Cam Bank agreement there was a 0% part redemption fee.

Does anyone else have an ex CAM Bank mortgage that was transferred to another bank and had different terms applied to the mortgage ,or could confirm that Sabadell are acting unlawfully 

in charging this fee.

Any advice would be greatfully received

Ray

Hello Charles or is it Ray and welcome to EOS

Sadly this is the typical type of stunt pulled by a Spanish bank. It would probably cost you more in legal fees to sort it out than the 1% commission, and the bank knows that. All down to no effective regulation.

Perhaps your best and cheapest option is to make a complete nuisance of yourself. Go to your local branch waving your original mortgage agreement and camp in the manager’s office, take your sandwiches and a flask of tea. Don’t waste your time with phone calls and emails to a Spanish bank.

If you are stuck in the UK then hassle the London branch manager (daily). Phone calls will be cheaper.

Address: The Leadenhall Building, 122 Leadenhall St, London EC3V 4AB, UK

Thanks Kavanagh

It's actually Ray Charles !!!

Tried taking everything to SABADELL in Spain they emailed someone still waiting .......

I too had a mortgage with Cambank and then it transferred to Sabadell. If I remember correctly the redemption fee is applied to the remaining balance on the mortgage. (You should check with them) I paid 3 large payments over a period of months leaving a balance of 5000 euros, then asked for a redemption figure for the mortgage. Therefore the redemption fee was 50 euros.

Hi Jarvis,

Do you recall paying 1% commission on those 3 large payments?

The plan was to make a payment of €60k (similar to yourself) leaving €2k outstanding then redeeming the balance to clear the mortgage.

I definitely didn't pay any commision on the large payments, only on the final redemption payment.

Were those large payments made to Cam or when Sabadell took over?

All to Sabadell.

Great thanks Jarvi,

Ray

I want to part redeem my mortgage ,but it appears that Sabadell want to charge 1% commission .

Not just Sabadell. When we went to pay some of the mortgage sum off the fee with Bancaja (now Bankia) was 1% of the payment, same as if paying the whole mortgage off. 

Some UK mortgage lenders will also charge  a fee from 1 to 5 percent if you pay off some of your mortgage but most allow you to pay off 10% in a year with no charges. Go over that and some will charge the percentage on the full sum you have paid off while others will only charge on the amount over that 10%.

Whichever country, read the small print.

(We had a mortgage in the 80s when the  interest rates were 13% plus. When the rates came down, we continued to pay the same amount thereby reducing the balance. In the third year of doing this, Halifax charged us 1% of the overpayment as we had exceeded the 10% allowed. We did pay off the mortgage early by nearly 10 years doing it that way, though).

Try this link: https://www.bancsabadell.com/cs/Satellite/SabAtl/Depositos/1191332197245/en/ . Sabadell will ring you back in English from their call centre in Madrid if you provide a number. They were very responsive and helpful when I rang last week (on another matter)

It seems that the bank has no right to do that unless it was stipulated in the contract. I think you should go to a lawyer to prove that you are right and do not have to pay anything. The real estate issue is quite complicated because there are a lot of details and subtleties that you need to be aware of. Many people buy real estate without being knowledgeable in this area. Thus, they are faced with a lot of financial and legal issues. If you had been more knowledgeable on the subject or had sought help from professionals, your problem might not have existed. Next time, I advise you to contact playarealestategroup.com to avoid ending up in the same situation. This company will accompany you from the search for a property to the purchase. I think that with their help you will not have any problems.

In all the time I've worked in real estate, I've seen a lot of similar situations and I don't like it. I entered this niche thanks to a course at chaddo.com, where I learned how to make money by investing in real estate. Talking to realtors, agents, and developers, I realized that often people are in the same situation as you. I can advise you to contact a qualified lawyer and discuss this issue with him, if the contract was originally specified 0%.