Derbyshire Home Loans LIBOR Rate Calculations

darrenm3

I am unfortunate to have a 3 month LIBOR linked mortgage with Derbyshire home loans...(dont ask). Since coming off their fixed rate mortgage and on to their varaiable rate my mortgage it has been reviewed twice. At the bottom of each letter it states "For these purposes and under the Mortgage conditions the LIBOR rate is a 3 month LIBOR fixed quarterly on the 1st March, June, September and December".

So I assumed that around the start of this month (1st March) I would recieve a letter with a change in the interest rate. I telephoned DHL today and was told they generally fix the rates not as I thought on the 1st of March, June, September and December but around the middle of the month prior to these dates. I quoted the statement written on previous interest change letters I received which at this point the woman on the phone became most annoyed and growled "listen..Ive told you, we fix the interest dates around the middle of the month!". Anyway after much argument about how misleading the statement is they print on the bottom of letters and how can they predict what what the 3 month Libor rate will be, I was told my monthly repayment for the 30th of April would be £538 which is great, thats a full £200 less than I`m paying now.

Unless I`m missing something, what bothers me, apart from their awful customer service (which doesn`t suprise me), is that if they did stick to the statement printed at the bottom of their letters as above, my mortgage would be £200 less this month. by delaying another month they get another £200 out of me, can that be right?