Fixed rate - not fixed payments!!

Thor_Odinson

Have just been told by Halifax that although my mortgage rate with them is fixed (till later this year) the amount they can charge me isn't! As their variable rate has increased, the amount I owe over the term increases so they are putting up my payments. Of course I am disputing this. Can they really offer a two year fixed deal but then change the amount you pay in that two year period? Surely the word "fixed" is the key one here? Or is it fixed rate but not fixed payments....crazy? Any advice?

Thrugelmir

Thor_Odinson wrote: »

Have just been told by Halifax that although my mortgage rate with them is fixed (till later this year) the amount they can charge me isn't!

Later in the year you'll be switched onto the lenders variable rate which is increasing. The notification you have received is merely informing you of this.

Until then you'll continue to pay the fixed amount.

opinions4u

If you added fees on to the original loan these are charged at the svr.

But the answer above is probably accurate.

rothchick

They are correct when they say that. The payment is not fixed because your debt can go up due to charges being added on and not paid, unpaid product fees, payment holidays, changes to your due date etc. All these can affect your monthly payment even on a fixed rate mortgage. Same with extra payments, if you make them on a fixed rate mortgage you payment will go down.

You're better phoning Halifax back and ask them why it went up, if they can't answer on the phone it will be looked into if you request it. What you were told originally doesn't make sense!

HTH

kagsb70

We have also received a letter telling us our 'Fixed rate' mortgage has gone up. When I have spoken to the bank about this they tell me they are for fees originally incurred on the previous product we had in 2008. However there was no mention of these fees in our 2009, 2010 or 2011 statement. They were so well hidden that when my product was reviewed in Feb 2012 the sales person who calculated what we owed did not even see the 'forgotten' fees, when he sold us another fixed rate mortgage. When I question how this was, I was told the system had not been updated for three years! Our additional payments will total £50 per year. Not a bad little earner for the Halifax if they do that to all the customers on Fixed Rates. I wonder if the case had been different if I had taken the settlement figure calculated by the Halifax in Feb and transferred to another lender or would they now be perusing me for the forgotten fees?

rothchick

Product fees are debited as soon as your new rate starts, this would have been in 2008, it sound like your monthly payment wasn't calculated following the debit of this fee. If you check hour 08 statement you should see the fee there around the month you took out the new product