Can this be right?

almeida8

Being a little impatient here as I've just got in from work to a letter from my mortgage company and can't phone them til the morning... so I would be grateful for any thoughts on this.

A few years back I 'drew down' some extra cash on my mortgage to pay for home improvements - this was the balance of the amount of my mortgage and the lender's valuation of my property. This amount was to be repaid over x years at a fixed rate of interest, so the payments were the same every month and simply added to the monthly mortgage direct debit. This was regarded by my lender as a second account and I got a breakdown on that separately from my mortgage every year.

The last payment is due to be made next month, and I assumed that my monthly repayments would then drop by the drawdown repayment amount.

According to the letter, however, now that my 'fixed period' has ended, they are bumping up the interest rate on my mortgage proper. (NB The special fixed rate mortgage I got when I first bought the flat has long expired and I now pay whatever the standard variable rate is.)

I've found nothing in the paperwork that said my rate proper would increase once the drawdown loan was repaid, so I'm hoping it's a mistake...or is it feasible this could be correct?

Cheers for any replies.

almeida8

They goofed.

Apparently my situation and the fact that they're going to be passing on the recent interest rate cut (for once) was more than their system could cope with.

A letter with, hopefully, the correct monthly amount, is on its way.