Bank write to tell me that my Mortgage is going down, but increase it!

the_tired_one

Obviously with Interest rates coming down, that has been reflected in monthly mortgage repayments.

In December 2008, my Building Society wrote to me and said

"The rate of interest applicable to your account will decrease to 5.34% per annum from 1st Jan 09 and your revised monthly payment will be £253.93 from Jan 1 2009"

Happy days I thought!

In January 2009, my Building Society wrote to me and said

"The rate of interest applicable to your account will decrease to 5.19% per annum from 1st Feb 09 and your revised monthly payment will be £288.61 from Feb 1 2009"

The rate has come down by a further 0.15%, yet theyve increased my monthly payment by nearly £35

maninthestreet

Have some additional charges been applied to you mortage account, e.g buildings/contents insurance?

the_tired_one

maninthestreet wrote: »

Have some additional charges been applied to you mortage account, e.g buildings/contents insurance?

I didnt renew my contents/Building insurance with them in December 08

They gave me a renewal quote of £450 - I declined, and got better cover for less than half!

Surely that should bring the monthly payment DOWN, not up?

I'll pop into to see them I think

Robert_Sterling_3

Let us know what they say when you pop round.
At first sight it certainly looks fishy.
You should go round to see them and carp about it.

the_tired_one

Phoned them.

They just said the system hadnt updated - they have knocked of the additional £35/month!

To think they might have happily charged me had I not phoned them!