Monthly payment went up with -0.25% decrease

rebel34racing

Hi Everyone, thought i would share my concerns with the everyone, I received a letter from the Cheltenham & Gloucester yesterday, informing me of the new rate change, yippee i thought my monthly payment will reduce and i will have some extra cash in my back pocket . however they informed me that my monthly mortagage payment will increase by £21 . In shock i read the Q&A sheet which came with the letter which states that if I was in arrears my payment may go up. I've never been in arrears or defaulted on my mortgage payment in the 14 years that i have held it. Phoned them, and they said that i had a mortgage holiday for 2 months at the end of 2013, which i did, when i changed jobs. They apologised and said that they did'nt re-calculate my mortgage payment at that time, but have now noticed the error and were re cooperating that loss. They offered me £100 for my inconvenience after i made a fuss, which i turned down and escalated the problem to a complaint. my biggest concern is the fact that they send me a statement every year , stating how much is owed and i take that as accurate and correct. it puts doubt in my mind how accurate my monthly payments have been since the mortgage was set up. They are going to get a Complaints manager to call me back within 48 hrs, will update then, anyone else had a similar monthly hike since the -0.25% decrease

lee111s

They made a mistake, you owe the money and are liable to pay it back.


If you're not happy, remortgage and switch lenders.

TrickyDicky101

Assuming no additional fees (not interest) have been charged (have you established this?) then your actual loss is negligible (apart from the inconvenience which is difficult to quantify financially).

£100 doesn't sound too bad as a result. Perhaps they will increase it if you ask them to - maybe to £200?

getmore4less

Payment holiday === authorized arrears

Your actual loss for not having the payment recalculated will not be that much.

I suspect a lot less than you think it might be

as an example

A £50053 mortgage @ 4% paying £500pm. would last 10y 2 months

A 2 month holiday would result in a new payment of £507 to have the same end date

After 3 years(a bit longer than yours) the actual loss would be £15 for the extra interest that was charged over that time if you carried on paying £500.

edit:
to make up the shortfall the new payment over 7years left would be £510

rebel34racing

Thanks for all the reply's, just been on the phone for 1hr 50mins , they will not accept that it is an error, and told me , that its upto them when they decide to take the two months back, unless i stated at the time how i wanted to repay it. so basically 3 years and 7 months later they have started to take it. They have given me £150 for me to close the complaint.


I understand its money i owe them from the mortgage break, and they are saying that because i havent changed product for the last 7 years it did'nt flag up. If the interest rate hadnt changed until the end of my mortgage term my last payment would have been 3 months mortgage.


I've closed the complaint and accepted the £150

getmore4less

if the payment holiday was the end of 2013 how is now 3y7m later?

fewcloudy

rebel34racing wrote: »

Thanks for all the reply's, just been on the phone for 1hr 50mins , they will not accept that it is an error, and told me , that its upto them when they decide to take the two months back, unless i stated at the time how i wanted to repay it. so basically 3 years and 7 months later they have started to take it. They have given me £150 for me to close the complaint.


I understand its money i owe them from the mortgage break, and they are saying that because i havent changed product for the last 7 years it did'nt flag up. If the interest rate hadnt changed until the end of my mortgage term my last payment would have been 3 months mortgage.


I've closed the complaint and accepted the £150

Should just about cover the phone bill...


fc

rebel34racing

sorry my admin error 2 years 7 months