End of Mortgage Term.

Andy_1234

Hi,

We took out a 5 mortgage in July 2009 with C&G. Our first payment was on the 7th July that year. I assumed that the final payment for this term would be 7th June 2014 and we would move onto the SVR. However, I've just spoken with someone at TSB (they took over C&G) and she said our term doesnt end until 31st August. She has no way of checking the original term agreement, and told me I need to go into a branch.

I've searched all the documents I have and all I can find is the Summary of Payments they sent out, which states the first payment is on the 7th July 2009. I can't find anything to say they will be taking 62 months of payments rather than 60 (for a 5 year term).

Is it normal to make an extra couple of months payment on a mortgage?

Many Thanks
Andy

Thrugelmir

Fixed terms always end at the end of a month. With all borrowers ending at the same time.

When fixed term products are offered there's a window of opportunity to apply. As normally the lender will have a set tranche of funding available. So some people's terms are slightly longer and some slightly shorter.

The over riding reason is administrative as it enables systems to be programmed rather have vast amounts of manual intervention.

Andy_1234

Thank you

I was hoping it was an error on their part, although that was really wishful thinking. I guess I was just looking forward to saving £300 per month on the mortgage, but now have to wait another couple of months for that.

I've just seen a statement on our end of year mortgage, which says:

'Date after which early redemption charges no longer apply: 31st August 2014'.

Oh well, only 2 more payments to go.

TrickyDicky101

I realise it's no consolation but had interest rates been higher and the SVR you are due to move onto was above your fixed rate, you'd be quids in and probably happy for those extra two months. I was in the same position as you (albeit only one extra month) that cost me £130ish.

kingstreet

You didn't take a five year fixed rate from completion. You took a fixed rate until 31/08/2014.

Check your original key facts illustration or mortgage offer and it will confirm. I don't ever remember C&G offering anything else...

Very few lenders offer a period of number of years from completion. Most operate fixed end dates. This can mean the duration is more or less than five years, depending on your eventual completion date.