Woolwich Mortgage - End of Fixed Rate Question!

Nikabella

I really need some help off of you kind mortgage experts as I’m confused about our fixed rate mortgage coming to an end.

We took out a 3 year fixed rate mortgage on 13/06/06 at 5.29%. After the fixed rate ends our mortgage converts to a tracker mortgage at 0.95% above the base rate (with no collar!)– which as you can imagine we are keen to get on to!

As we took our mortgage out on 13/06/06 I was under the impression that the fixed rate would end & our new rate would start on 13/06/09. Obviously I am understanding this wrong as I have called Woolwich’s customer service & the guy confused me somewhat.

Our payments go out on the 16th of the month. The first payment went out on 16/07/06 & was a larger than normal one as they don’t take the first payment till the following month.

At first he said the fixed rate would end at the end of June but then followed that by saying the rate would change on the 4th July. He said that our July payment would be a partially reduced one as the new rate would only be effective from 4th-16th July & everything before that would be on the old rate. The first fully reduced payment would be in August.

I can’t get my head around why the rate would change on the 4th July & not on the 13th June & I don’t have my mortgage paperwork to hand so I was hoping somebody could explain to me how it works.

Also, we don’t actually want to reduce our payments at all as we want to overpay but I would like to know when we will actually be making overpayments. We also plan to make extra overpayments as once the fixed rate finishes we are no longer limited to 10% overpayments for the year.

I hope I’ve made sense & listed all the necessary information.

A.x

TurnaroundSue

Hi - I'm sorry but I dont have the answers you are looking for, but would be inclined to ring them back and hopefully get somebody else and pose these exact questions to them. Maybe you could ask them to put it in writing also, which might help you to resolve the situation.

We are in a 10 year fixed mortgage, with 4 years to go, but would love to be in your position of our fixed rate coming to an end shortly!!! Good luck and hopefully you will find the answer to your questions and get on the road to an early repayment of your mortgage.

chivers1977

Normally fixed rate products with Woolwich/Barclays have a fixed end date. ie it wouldn't finish on 13/6/09 just because the appointment was on that date or it was applied on that date. It would have been a 5.29% fixed rate until.....4/7/09. It will be on your offer. This means that your interest will reduce from 4/7/09 but the payment won't reduce until the August payment as the billing on the account is carried out on the 1st of the month which would be based on the fixed rate.