mortgage terms and condition changes

stefdj

hi , anybody know if a mortgage company can change the way they apply interest to my mortgage mid term?
my tracker used to changed yearly according to base rate , now woolwich (barclays) say this will change to monthly.

basically whilst interest rates went down i was made to pay more interest for longer and now the most likely interest movement is upward they have conveniently changed there t & c to benefit again. Is this legal? , i was under the assumption they couldn't change this for existing mortgages.

foreversummer

Do you mean that you have a Woolwich tracker mortgage where your payment is reviewed annually? Any changes in the base rate are applied to your account on the first of the month following a change. It is only your payment that is reviewed annually.

It has been reported on another board that Woolwich now want to cease annual reviews and change the actual monthly payment on a monthly basis. I haven't had any notification from them yet.

This does not affect the amount you pay over the lifetime of your mortgage. You are not being penalised and I can only assume that the Woolwich want to avoid payment shocks when the base rate does eventually rise. I do think however that we should be given a choice.

Foreversummer

opinions4u

They can't change the way they calculate your interest.

They can change the timing of changes to your monthly payments though.

It's all swings and roundabouts - it evens itself out over the term of a mortgage, so it's not worth losing sleep over.

getmore4less

foreversummer wrote: »

It has been reported on another board that Woolwich now want to cease annual reviews and change the actual monthly payment on a monthly basis. I haven't had any notification from them yet.

It is on the annual mortgage statements, mine came this week,

I think it is explained reasonably well on 2 sides of A4.

getmore4less

stefdj wrote: »

hi , anybody know if a mortgage company can change the way they apply interest to my mortgage mid term?
my tracker used to changed yearly according to base rate , now woolwich (barclays) say this will change to monthly.

basically whilst interest rates went down i was made to pay more interest for longer and now the most likely interest movement is upward they have conveniently changed there t & c to benefit again. Is this legal? , i was under the assumption they couldn't change this for existing mortgages.

Thay are not changing the way interest is applied. that stays the same.

They are changing the way the monthly payment is calculated.