Woolwich Mortgage - new interest rate

marlasinger

Edited for privacy

Ivana_Tinkle

Is that amount just for the first payment? If the rate ends just before your payment date, you'd have almost a month at the old rate with just a few days at the new rate. Then, the next month, you'd have a whole month at the new rate so the amount would drop again.

marlasinger

Edited for privacy

Morgage_Confused

Somethings wrong.
The new payments look like a rate of 3.49 not 2.49?

Jimbo1976

When did you take out the loan? The older the mortgage is the closer the new rate is to the base rate. Looks if your new rate is 2.49% then you have a base plus 1.99% for life as a reversionary rate.

No idea why your new payment is higher than expected. i think you need to give Woolwich a call

marlasinger

I will give them a call tomorrow.

Loan was taken out in August 2010, and now that the fixed period has ended it has reverted to the Lifetime Tracker with a rate of 1.99% above BBR.

I probably need to ask them to recalculate it again.

Thrugelmir

marlasinger wrote: »

Loan was taken out in August 2010, and now that the fixed period has ended it has reverted to the Lifetime Tracker with a rate of 1.99% above BBR.

I probably need to ask them to recalculate it again.

If your fixed rate ended at the end of June. Then you've more than 23 years left to run.

So your calculation will be out.

Trebor16

I just had the same thing with Woolwich with my 2 year deal that ended on the 30th June. My old rate was 3.69% and I should be on a rate of 2.49% and the letter I received 6 weeks ago said my payment should go from £825 down to £685 a month. I made some over payments on the 1st July and have now received a letter saying the new payment will be £777! Confused? You bet!

getmore4less

marlasinger wrote: »

Hi,

Our fixed rate mortgage came to an end on 30/06/12, so we are moving from 3.69% to 2.49%. However, we have just received a letter that says due to this rate change our payments are going down from £433 to £427.63. What the..? Surely it should decrease by more than this?

The amount we owe is £80,965.70, with 23 years remaining. Using the mortgage calculator on this site, the monthly payment should drop to £386 pm.

Do I need to ask them to do a recalculation, or am I missing something? I know they usually only recalc at the end of their year, but they must have done something to recalculate our monthly repayment down by £5-ish.

marlasinger

That rate of payment would be close to 20 years not 23

£433pm @ 3.69% was 23years 3 months


are you sure the ammount owing is correct?

marlasinger

I know my calculations are off by a bit, as I rounded to 23 years rather than including the number of months as well, but it's not so far off to make a huge difference to the monthly payment I have calculated.

I'm positive the amount is correct, as it's from their letter and they have just confirmed it over the phone. The chap I spoke to did a recalculation and then asked how much I thought it should be, and said it would be passed to the 'investigation team'. If I'd thought a bit quicker, I should have asked what his calculation came to, and what difference it makes what I think it should be. :eek:

Trebor16, sounds like you had the same deal I had, 3.69% fixed for 2 years. Mind you, I only received my letter a couple of days ago, not 6 weeks ago like yourself. Maybe they are recalculating yours still at 3.69% but with the overpayment taken into account? Who knows??

They told me I'll get a letter in the post in 5 days, so I shall wait and see what they say. I'll reply back to this thread with their response.

Trebor16

Marlasinger,

It sounds like we had the deal. I swapped from a 5 year fixed rate at 4.99% which still had 2 years left to run to the 2 year deal at 3.69%. It saved me £8000 on my payments over the two years and even if you take off the £3000 early repayment fee on my previous deal I still saved £5000 over the two years.

What surprised me is that when phoning them up they said it probably wouldn't be corrected until the mortgage payment due on the 16th August. Sometimes their systems are still archaic!