urgent advice needed here please.

julie88_2

I have a £49000. morgage with the chelsea B.S. but the 0.25% rise is an extra £33 is this correct it just seems a lot for a quater percent. My morgage is a repayment on daily interest. Forty nine grand is the present balance. percent raise is from 6.49% TO 6.74%.

Anyone good with figures check this please as the building society could not give me an answer over the phone.

thank you.

The Chelsea B.S will not discuss this matter on the phone the tellysales rep is saying the figure is higher [at £33 instead of about £10] because I only have one year and 8 months left on my morgage instead of 25 years. My interest is based on a daily basis should the outstanding years come into the equation?
Can anyone confirm or correct this please. Even the local branch would not discuss the matter and said the head office will write to you.
Please help me decide what to do next. Thankyou.

Joe_Bloggs

The term does make a difference.
Eg for a repayment mortgage.
£49K @6.49% over 120 months is £556.14 pm, @6.74% = £562.39 so a difference of £6.25.
£49K @6.49% over 60 months is £958.51 pm, @6.74% = £ 964.26 a difference of £5.75.
£49K @6.49% over 20 months is £2591.51 pm, @6.74 = £2597.05 a difference of £5.54.

There has been an error somewhere. I am sure you will not be out of pocket as they will put their calculations in order when they get the chance. There is a lot of work involved in catering for an interest rate rise.

J_B.

vr6lad

I currently have a £48,000 mortgage and my payments have gone up by £8 a month. Your percentage rate is higher than mine but £33 is definitely one heck of a difference in price.

You say you have spoken to a telesales rep. You really want to avoid the sales guys and speak to someone in customer services or a manager. If they won't help, a letter will suffice but obviously this takes time to get there/ respond etc.

Did you arrange the mortgage through a broker local to you? When I had a query on my payments, the broker was happy for me to come and explain my query to him. He promptly phoned up the company and got an answer the next day.

I'm sure you'll get more useful responses to your post from the mortgage gurus on here - than mine, but I'd try contacting the B.S again asking them to clarify exactly why you are being charged much more than you expected, and to double check that no mistake has been made. Worth a shot!

julie88_2

joe our interest is based on a daily rate as opposed to a yearly rate.

vr6lad It is impossible to get past Chelsea B.S.telesales they will not allow access to any of the administrators, I asked for a call back even that had no response so I have to wait for the letter but will not be able to discuss with anyone. i am getting very frustrated even a local branch refers me back to telesales. Has anyone got a tel number for the chelsea building society where i can get hold of helpful peolpe to discuss this saga.

Joe_Bloggs

@julie88
What is your point ? Are my figures that far out ? I can divide by 365.25 or multiply the same amount. SVRs are quoted as an annual rate ! This helps borrowers to figure out whether they are being ripped off or not. A monthly treatment of the situation will give very close results to those based on a day to day treatment.
Did this loan include a cashback element ?

J_B.

julie88_2

joe bloggs. Sorry to sound confusing but its not a hp loan its a morgage based calculated at interest based on a daily basis. Is the rise of £33 right? As everyone else I know has only had very small rises but they have longer to go on the morgage. The original morgage did have a cash back element which ties us into it.

Joe_Bloggs

I appologise for using the term loan. The high rate did seem familiar hence the cashback query. My calculations for simple repayment are correct. There may be some knock on affect with the cashback aspect of the [strike]loan[/strike] mortgage. This is only my guess, since you clearly did/donot have a conventional repayment mortgage. Are you free of any penalties that relate to the cashback element of the mortgage ?
J_B.

julie88_2

joe thanks for the reply, still waiting for the letter from the Chelsea B.S.

julie88_2

we are tied in to the mortgage until march 208

esthomizzy

I just got a letter from our mortgage provider about our rate rise. Ours is a base rate tracker and consequently has just gone up from 4.5% to 4.75% On 140k with a remaining 15 years to run this upped our payments by 20pcm from 1069 to 1089. I therefore think that as our sum outstanding is larger that your £33 is an error. If they will not speak to you on the phone write them a letter explaining that you need someone to call you back and explain the situation with these figures below (explaining how you arrived at them).

According to the mortgage calculator on the jobs and money site (http://www.thisismoney.co.uk/tools-and-calculators/calculators/index.html?in_page_id=86) for an 18month term
@ 6.49% payment should equal roughly 2864.22
@ 6.74% payment should equal roughly 2869.78

Which is closer to a fiver than 33quid.

regularsaver1

Do you pay anything else via your mortgage ? - as in insurance at the same time/same direct debit? - are the fees on a different rate to the mortgage?