Fixed Rate Period Calculation

david5_2

Hi,

I am currently on a 2 year fixed rate mortgage with Nationwide, which commenced on 4 January 2008. I plan to revert to the SVR mortgage after this which will be notably cheaper.

I would have expected a 2 year fixed rate to end on 3 January 2010, but in fact I'm told my first payment on the new SVR rate will be on 1 February. So in fact it seems I'm on a 2 year and a few weeks fixed rate mortgage.

I haven't yet looked at the Ts & Cs which may clarify this, and perhaps I'm missing something, but it seems rather unusual especially as it'll cost me more for the rest of January.

Does anyone have any thoughts or experience of this? It seems odd and I wonder if I can persuade Nationwide to re-calculate so I save money this month.

Many thanks.

opinions4u

it seems rather unusual

It is absolutely normal for a fixed period to expire on a set date (e.g. 28th February) rather than exactly 2 years after commencement.

Your mortgage documents will confirm exactly what you signed up for.

Joe_Bloggs

What is the difference in the two rates ? Can you access your mortgage details via internet banking to see how much interest per day you are paying ? This would require monitoring consecutive daily mortgage balances to work out the rate you are paying.
J_B.