My Fixed Rate Mortgage Interest Rate Went Down!?

tylerdurdenk

It was the annual statement that prompted me to look into this.

It states the rate as 2.50%.

Tabatha_Kitten

I think if it were me I would say nothing and put the difference aside in a seperate savings account.
Best case scenario they dont notice and you are laughing.
Worst case scenario you hand it over when they do realise having made a few quid in interest.

bee78

hello,

this is what i would do. i will give your lender a call, and say you are just reviewing your mortgages and like to confirm the rates you are paying. let them do all the talking. if they confirm it is 2.5%...just keep quiet, and say thank you and leave the call. note down the the person's name that you spoke to, the date and time that you made the call. and keep all these notes in a safe place and forgot about the whole thing, and enjoy yourself. if they confirm that rate is 4.09%, pls do the right thing:eek: and make them aware of the mistake they have made. it is better to clarify things now, then later.

hope this helps.

JimmyTheWig

tylerdurdenk wrote: »

OK, let's assume I'm not an idiot.

A fair assumption.
Then we can assume that you noticed that it was wrong when your statement came through, which you did.
Have your monthly payments been less than agreed when you took out the additional borrowing?

What are my rights if they have made a mistake?

You have the right to be put back in the situation which you would have been in had the mistake not happened.
Unfortunately for you this would mean them adding the difference in interest back onto your account and, presumably, asking you to stump up the money.
This may, actually, see you out of pocket because when they apply the correct interest rate with the payments you have so far made then due to compound interest you will actually be charged more than you would have been in the first place. Obviously you'll have the interest in your savings account in your favour, but interest on your mortgage is going to be more than the interest on your savings.
You should get a goodwill gesture for them messing this up, but due to the high numbers involved in mortgages just this extra compound interest may well exceed any goodwill gesture.

Might be best to contact them now and sort it out. Maybe there is a legitimate reason for it being 2.5%. Maybe you've mis-read the statement and it isn't 2.5%. Or maybe they've got it wrong - but would probably find out eventually.

If you want to chance your luck, are you allowed to make overpayments on your mortgage? Rather than paying the money into savings, could you pay it into the mortgage as an overpayment?
That way you won't lose out on compound interest when (if?) they find out.

Simon_gloster

Slightly unsure why this thread is still ongoing.

Pre 29/4/2009 any nationwide mortgage that completed on any incentive deal would revert to 2% above base for the life of the loan. Mortgages completing after either of these dates go to their variable rate currently 3.99%..

So this is what has happened on your case likely. Lock the thread now.

tylerdurdenk

It's been a while but I have just come off the phone to Nationwide after following bee78's advice.

"Tom" gave me a breakdown of my current mortgages (of which there are 3)

The mortgage in question was described as the Nationwide variable rate mortgage (currently tracking at 2% above the base rate). He suggested it is the rate that people move onto after a fixed rate mortgage period has come to an end. He also said I wasn't tied into it in any way.

It seems as though this mortgage while it was meant to be fixed for 3 years at 4.09% has moved straight onto this variable rate, and missed the fixed rate period altogether.

Very strange.

reformedEffortmaker

You lucky man!

reformedEffortmaker

Or woman....