Halifax Rate Increase Confusion

MFewings

Just had my letter from Halifax regarding the 0.49% increase.

I have just over £3000 left to pay on my mortgage. Payments are currently £515.63 and fully up to date. Today they tell me the payments due from 1st May are £779.14. To my reckoning this is well over a 50% increase.

Ive tried calling them and got a woman who informed me I just didnt understand percentages or interest rates and If I was correct and ended up paying to much at least my mortgage would be paid off quicker.

Yes I appreciate paying it off quicker is a nice thought but finding over £200 a month extra from same income isnt possible.

Have made an appointment to go into branch and talk to someone but wondered if anyone on here would have an idea why its been increased so much.

The_J

That doesn't make sense, you only have £3000 left on the mortgage? So 6 months?

An interest change would make hardly any difference to the monthly payment. Do you mean £30,000?

Are you on a fixed rate or any other kind of benefit rate at the moment that runs out in May?

MFewings

Thanks for your reply The J, no im correct with the amount. Checking its exactley its £3042.

MFewings

sorry sent message to quick, no its a straight repayment mortgage for full amount

The_J

So you have literally a few months to go?

In that case it's probably some kind of error or miscalculation. Extend the term by a couple of months if you cannot afford the extra. You should be able to do this in branch.

HappyMJ

As above extend the term by a few months and pay the amount you can afford. It'll be free and only cost a couple of pounds in interest.

MFewings

Thanks, a bit relieved to know that I can discuss the option of extending. However does still seem very strange how such a large increase.

HappyMJ

MFewings wrote: »

Thanks, a bit relieved to know that I can discuss the option of extending. However does still seem very strange how such a large increase.

It's just a computer generated letter. The computer might have calculated 4 payments rather than 6 payments remaining. Don't worry about it.

rothchick

When was your monthly payment last calculated? Do you pay for your home insurance through your mortgage?

MFewings

Been to see advisor at local branch and it seems that ive got 2 payments of £779 and then a year at just over £100 a month. She couldnt tell me why or what its about but does seem correct amount to finish morgage.
Can make larger payments after the two months to clear it sooner with no penalties.