48k Mortgage Tracker or Fixed Rate? (Repayment)

MissScarlett_3

Keith:) wrote: »

True to form I have the paperwork and guess what...

Item 4. Description of this mortgage:

A variable rate which is 0.17% above our base rate (currently 5.75%) for 276 months, giving a current rate of 5.92%. Changes in our base rate made during the month will take effect from the 1st of the following month.

Called to confirm and its correct the guy I spoke with was wrong, thats two of their staff giving me incorrect information... looks like I am back on with the Woolwich.

Thank you all so much with your answers and advice appreciated as always!

:T

I have a mortgage offer now and It does suggest that payments are reviewed annually, I quote-:

Changes to the base rate during the month will be take effect from the first of the following month. Your monthly payments will be reviewed and any changes will be advised to you at the end of each mortgage year throughout the term of the mortgage.

The plot thickens - are there any Barclays/Woolwich mortgage customers/advisers on a tracker rate that could please clarify the exact position regarding repayments. Do they change as and when the BR changes or once per year?

Keith:)

MissScarlett wrote: »

I have a mortgage offer now and It does suggest that payments are reviewed annually, I quote-:

Changes to the base rate during the month will be take effect from the first of the following month. Your monthly payments will be reviewed and any changes will be advised to you at the end of each mortgage year throughout the term of the mortgage.

The plot thickens - are there any Barclays/Woolwich mortgage customers/advisers on a tracker rate that could please clarify the exact position regarding repayments. Do they change as and when the BR changes or once per year?

Oh this is really annoying how can they have so many different terms, I guess the only reason we might have different terms is because mine is a remortgage and yours maybe a new mortgage?

My terms dont mention the annual review of payments and suggests payments will change and the lady I spoke in Cardiff assured me that they would change... oh how annoying...

come on woolwich and Barclays sort your products out and be clear!

homer_j_3

The woolwhich have recently been fined for having terms in their contracts that the FSA did not agreee with. If the illustration differs from the offer, it is the offer that they will follow as it supercedes (sp?) all other illustrations. If you do not question at this point and complete you are stuck with the conditions.

Keith:)

homer_j wrote: »

The woolwhich have recently been fined for having terms in their contracts that the FSA did not agreee with. If the illustration differs from the offer, it is the offer that they will follow as it supercedes (sp?) all other illustrations. If you do not question at this point and complete you are stuck with the conditions.

Thanks In section 5 of the KFI it says (at the bottom)

The figures in this section will vary following interest rate changes and if you do not keep the mortgage for 23 years.

Then in section 6 it says:

276 payments at a variable rate (currently 5.92%)

Section 7:

what if interest rates go up?

The monthly payments shown in this illistration could be considerably different if interest rates change. For example, for 1% point increase in our base rate, your monthly payments will increase by around £35

I am hoping the lady in cardiff is correct she was very confident that my payments would change the following month and they only refer to the barclays base rate because they change it a month later but it will mirror the Bank of England BR.

Will see what comes through again but not impressed with their staff knowledge or their T&C's too random

[Deleted User]

How much do you earn?

If you earn a lot in comparison to your mortgage size, id consider an offset as you can quickly call a halt to paying interest.

Keith:)

Yant1 wrote: »

How much do you earn?

If you earn a lot in comparison to your mortgage size, id consider an offset as you can quickly call a halt to paying interest.

I am the sole earner so everything that comes in basically goes out as a family of four. So sadly not any spare cash to make it work for me at this current time.

I did look at the offset mortgages I just dont have the capital...

djbd1973

Keith:) wrote: »

I did look at the offset mortgages I just dont have the capital...

I did have an offset mortgage myself but recently changed to a fixed rate. The offset really worked well when I had a large amount in the offset account which gavea big offset reduction every month, but I used all my savings to start a new business so an offset wasn't the best option for me in the end.

I would definitely like to get back to an offset as quick as possible when I can build up the savings again, especially as my fixed rate only allows me to overpay by 10% (although finding 10% would be a tall task presently).

MissScarlett_3

Keith:) wrote: »

Oh this is really annoying how can they have so many different terms, I guess the only reason we might have different terms is because mine is a remortgage and yours maybe a new mortgage?

My terms dont mention the annual review of payments and suggests payments will change and the lady I spoke in Cardiff assured me that they would change... oh how annoying...

come on woolwich and Barclays sort your products out and be clear!

Keith

Mine is a remortgage also. Have you had the actual mortgage offer yet? If not then wait until you have seen a copy to see what the terms are. It will be the mortgage offer terms that you are agreeing to when you sign and it does advise to read them carefully before signing. As I previously quoted, mine refers to reviewing payments annually although the interest charged will change as and when the BR changes. Hope this helps.

Keith:)

MissScarlett wrote: »

Keith

Mine is a remortgage also. Have you had the actual mortgage offer yet? If not then wait until you have seen a copy to see what the terms are. It will be the mortgage offer terms that you are agreeing to when you sign and it does advise to read them carefully before signing. As I previously quoted, mine refers to reviewing payments annually although the interest charged will change as and when the BR changes. Hope this helps.

Thanks Miss Scarlet, I think it will be another week or just over until I get the actual offer, the KFI certainly implies my monthly payments will change a month after the BR and the lady on the phone was very confident that they would change she didnt even hesitate, I am hoping this is the case, will report back when I have more information.

Keith

Keith:)

MissScarlett wrote: »

I have a mortgage offer now and It does suggest that payments are reviewed annually, I quote-:

Changes to the base rate during the month will be take effect from the first of the following month. Your monthly payments will be reviewed and any changes will be advised to you at the end of each mortgage year throughout the term of the mortgage.

The plot thickens - are there any Barclays/Woolwich mortgage customers/advisers on a tracker rate that could please clarify the exact position regarding repayments. Do they change as and when the BR changes or once per year?

You were correct Miss Scarlett, it does indeed look like I have been given incorrect information 3 times... I have accepted the offer on the basis my payments would change however it looks like its an annual thing not impressed really... I think they should train their staff to know exactly what is what... arghhh