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Fixed rate mortgage with changing interest??
Littlelynnio
Posts: 1 Newbie
Hi,
Just would liked some advice.
Our mortgage clearly states on our online account that we have a fixed mortgage set until 2018 with Halifax. We signed up for a 5year fixed rate mortgage.
We have had it over a year and have just realised the interest is changing each month and has for over a year. Yes maybe should have noticed before now! I can't understand why it's changing when surely that's the whole point of a fixed mortgage. Also there were no mortgage fees at the time.
I'm not sure if we have been paying more or less interest than what we originally signed up for, plus it has been fluctuating.
If it is their error can they request more money from us if for example the interest has been lower than when we started? Having a baby in a few weeks so don't want to be landed with a bill. Or should we get compensation whether we paid more or less than we should have, if it is their error?
How else can the interest change each month on a fixed rate mortgage, our payments are the same each month though, just the interest that changes.
Or are we missing something obvious??
Thanks,
Lynn
Just would liked some advice.
Our mortgage clearly states on our online account that we have a fixed mortgage set until 2018 with Halifax. We signed up for a 5year fixed rate mortgage.
We have had it over a year and have just realised the interest is changing each month and has for over a year. Yes maybe should have noticed before now! I can't understand why it's changing when surely that's the whole point of a fixed mortgage. Also there were no mortgage fees at the time.
I'm not sure if we have been paying more or less interest than what we originally signed up for, plus it has been fluctuating.
If it is their error can they request more money from us if for example the interest has been lower than when we started? Having a baby in a few weeks so don't want to be landed with a bill. Or should we get compensation whether we paid more or less than we should have, if it is their error?
How else can the interest change each month on a fixed rate mortgage, our payments are the same each month though, just the interest that changes.
Or are we missing something obvious??
Thanks,
Lynn
0
Comments
-
Fixed rate is the amount you pay.
Interest will be different based on the number if days in a month and the debt at the end of the previousmonth.
As long as your mmonthly payments are the same your on a fixed rate.0 -
Correct - it is because the days in the month vary.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
There are two reasons for this outrageous act on behalf of the lender.
Alas, neither of the are compensation claimers.
1. There are a different number of days in each monthly accounting period.
2. Your debt is reducing. Because of this there is a very small reduction in interest being charged each day after you make a payment.0
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