Mortgage payment has risen in last year of mortgage (prior to rate drop)

focus246

Quite recently, I received a letter from Birmingham Midshires to say that in the last year of our mortgage they require a larger monthly repayment - about £70 per month extra, in order for the loan to be repaid on time. No reason for this was stated. I assumed that they must have miscalculated and now needed to increase the repayment, but felt that they should have noticed before and at least admitted their mistake. I called to ask the reason for the increase. At first, the person on the telephone repeated what was in the letter, i.e. in order for the loan to be cleared by the end date. I said that I understood that from the letter, but what was the reason for this, since they had known how much we had borrowed from the beginning and the end date. I was put on hold, then was told that it must be that there had been extra charges on the account. I asked if she could put those charges in writing and send them to me. After about a week and a half, I received a letter to say "Thank you for contacting us......" together with copy statements for the whole of the mortgage term. There were no extra charges. I gather they must have miscalculated, but are not prepared to admit it. I know there was a lot of miscalculation with Clydesdale bank a few years ago and quite a bit of fuss about it. I can see that the money is owed but I think that it is wrong that they can just demand to increase the payment without saying that they made an error. Has anyone else experienced this kind of situation? Grateful for your thoughts. Thanks.

rebel34racing

Hi

I had something similar, when the interest rate dropped by 0.25%, cheltenham and Glouster sent me a letter saying that my mortgage payment was going up by £20 instead of down which i expected. it turned out that i took a mortgage break in 2013 for two months and they forgot to adjust my payments, it was only because they recalculated with the recent interest rate drop , that they noticed, if that hadnt happened i would have had the same surprise as you at the end of the mortgage. i complained and they gave me £150 to close the complaint. but i wasnt happy.