Fixed Rate - Mortgages has Increased

kiddakidda

Maybe if Cheshire BS had been charging the extra £1.22 they may have not being swallowed up by NW

ViolaLass

robertdon777 wrote: »

Me too. Why send out a payment plan for the remaining payments on the fixed rate clearly stating what I will be paying and then change it with 2 years to go?

Did you ask them for details of how the calculation had changed? You're the only one in a position to do so (with regards to your own mortgage).

getmore4less

ViolaLass wrote: »

The interest rate is fixed, not the payment - I would love to know the details of how their calculations are different.

There will be some difference in a combination of how the flat rate is converted into monthly/daily, the compounding method and if they take account of the variable month length.

With mortgages often the payment is just an estimate based on a simple model(as used by most calculators), for daily interest the amount of interest changes month to month so there is a small over/underpayment every month.

Most will recalculate occasionally(triggers like a rate change, year end) which can result in a small change in payment.

Some lenders this is clearly explained in the T&C's.

Goldiegirl

ViolaLass wrote: »

The interest rate is fixed, not the payment.

Exactly.

The OP signed up for a fixed interest rate, not a fixed monthly payment.

For all we know, there could have been a fee applied to the mortgage when it was with the Cheshire, which the OP didn't repay, causing the balance to increase, thus creating an increased monthly payment when it was recalculated.

OP, if you are that fussed, ask for a breakdown of exactly how your monthly payment was worked out.

Nationwide won't thank you for it, causing all the additional work for the sake of such a small payment, but you'd get a definative answer

robertdon777

No fee applied at any time during the mortgage when at either lender.

They have never sent a breakdown on calculations, too late now for them I'm already on my way to a fixed with my own bank which should see me through to 3 years off being Mortgage free.

NW will not get any of my business again.