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New mortgage, payment question
Hoonercat
Posts: 89 Forumite
I've just switched the the NW 2 year fixed of 3.19% as an existing customer. When I applied last month (over the phone) I was told my payments would be £558 per month. I was then asked when I would like to start paying the new mortgage and I replied April 1st as the mortgage wouldn't have gone through before March 1st.
Since then a payment has been taken from my account on the old rate, so I assumed that the £558 per month that was quoted would now reduce and phoned to confirm. I was told that it wouldn't reduce as it is a fixed rate:huh: and no matter how much I try to get my head around it I still can't understand why the monthly payment won't reduce. The £558 per month figure was based on my February balance (roughly £108.7k on 26 Feb) so my March payment would have reduced the balance. If the monthly payment doesn't reduce then haven't I just given the NW £515 (March payment at old rate) for nothing?
I had thought that maybe the new monthly payment was based on what my balance would be at the end of March (just before the new payments begin) but the figure of £558 was quoted before I gave a start date for repayments.
Sorry if I'm missing something obvious here, the lady at the NW didn't really give much of an explanation.
Since then a payment has been taken from my account on the old rate, so I assumed that the £558 per month that was quoted would now reduce and phoned to confirm. I was told that it wouldn't reduce as it is a fixed rate:huh: and no matter how much I try to get my head around it I still can't understand why the monthly payment won't reduce. The £558 per month figure was based on my February balance (roughly £108.7k on 26 Feb) so my March payment would have reduced the balance. If the monthly payment doesn't reduce then haven't I just given the NW £515 (March payment at old rate) for nothing?
I had thought that maybe the new monthly payment was based on what my balance would be at the end of March (just before the new payments begin) but the figure of £558 was quoted before I gave a start date for repayments.
Sorry if I'm missing something obvious here, the lady at the NW didn't really give much of an explanation.
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