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| Version 0 | Version 1 |
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| Abbey explains mortgage warning | Abbey explains mortgage warning |
| (about 5 hours later) | |
| The Abbey bank has had to explain a letter it sent to its flexible mortgage customers warning of the impact of lower house prices on their contracts. | The Abbey bank has had to explain a letter it sent to its flexible mortgage customers warning of the impact of lower house prices on their contracts. |
| It said if their home's value had fallen so the amount borrowed was more than 90% of its value they could have to pay a lump sum to reduce it. | It said if their home's value had fallen so the amount borrowed was more than 90% of its value they could have to pay a lump sum to reduce it. |
| After it sent the letters the Abbey said it had no plans to invoke the clause forcing borrowers to do that. | After it sent the letters the Abbey said it had no plans to invoke the clause forcing borrowers to do that. |
| But it did not guarantee that it would not do it in future. | But it did not guarantee that it would not do it in future. |
| Flexible mortgages have become more popular because they allow homeowners to borrow money up to an agreed limit in stages and pay it back early if they wish to. | Flexible mortgages have become more popular because they allow homeowners to borrow money up to an agreed limit in stages and pay it back early if they wish to. |
| But Abbey wrote to some of its customers saying their credit limit had been reduced. | But Abbey wrote to some of its customers saying their credit limit had been reduced. |
| It said according to the terms of their mortgage agreement, if the value of their home falls so their mortgage balance exceeds 90% they will be given three months to pay the difference. | It said according to the terms of their mortgage agreement, if the value of their home falls so their mortgage balance exceeds 90% they will be given three months to pay the difference. |
| Abbey said after sending out the letters it wouldn't invoke the clause and had no plans to do so. | Abbey said after sending out the letters it wouldn't invoke the clause and had no plans to do so. |