Abbey criticised for rate switch fee

The "Product Switch" fee was introduced on Monday and is payable upfront when the customer switches deals and cannot be capitalised within the mortgage. Abbey says the additional charge covers the administration costs of processing the mortgage for a second time. "It is only payable if the application has been agreed and the survey already instructed," a spokesman says. "At the time a customer applies for a mortgage, funds are secured by Abbey and therefore reserved for them to complete. "If they decide to change to a lower rate product, Abbey is still paying the higher rate." But bro...