mortgage repayments?

ajk_2

Hi there,
i wondered if anyone could give me some advice,

i have £102.000 left on a mortgage with nationwide at 5.18%. I recently requested to change the term to end december 2012 with the first payment to be made in april 09. The repayment figure has been quoted at £2499 then i was told the calculations team made an error and it should have been £2551 which is higher than any mortgage calculator i have used. Nationwide also state that the term will run for 3 years 8 months but i thought it would be 3 years and 9 months if you include the april 09 payment.

thanks in advance

Robert_Sterling_3

I think the error might relate to this fact:_

All monthly payments at Nationwide are DUE on the first day of each month but payable more or less when you like as long as it is not later than the 28th of the month.

Nationwide add the monthly payment to the outstanding balance on the first day of the month.

Thus if your new mortgage starts on the 9th of April thay will already have increased your outstanding balance so that trhe ERC will be higher and in addition they will already have had, in theory, a payment for April and so there will be one month less remaining than you bargained for.

That is my guess as to what is going on.

ajk_2

thanks robert,

yes i pay on the first of the month. nationwide are sending me the calculations of both repayment figures i received but it had got me concerned when they said the calculations team had made an error.