Barclays Fixed Rate Mortgage increases annually

Thrugelmir

morrismen wrote: »

To raise mortgage rates before the interest rates have actually been announced by the BoE is morally indefensible by the Banks.

Putting to one side the BOE's intervention in recent years which shortly comes to a complete close. Lenders don't fund mortgages with money borrowed from the BOE. Indirectly it comes from overseas and as Mr Carney has said previously. The UK is dependent upon the charity of strangers. Rates have been edging up marginally for a while. Not least that the impact of the Feds last rate rise filters through the international money markets.

morrismen

After going back and forth with Woolwich, today another statement after they admitted their systems has "mis-calculated" the monthly payments. How? Well, if you made a mortgage overpayment in the mortgaged year, it hadn't reduced the monthly mortgage payment amount by X, rather it had increased it by X instead. What? Someone didn't know how to add and subtract. So how many customers has this been happening to, and for how long??? Well at least two years that I know of.


So I thought this would be the end of the saga. But we made an extra payment of £6500 last year in the mortgaged year. And the statement today shows some 10 months later a borrower refund of £6000 and then a part redemption of £6000 on the same day. So what the heck are they doing? Why the £500 difference? And the new mortgage payment is now only £8 less than the prior year's monthly mortgage payment, and remember this is a fixed rate mortgage. Something is just not adding up here still. It's absolutely nuts all this.


To top it all, Barclays must have realised there were major problems with their mortgages because suddenly the mortgage brand is now a Barclays mortgage and the Woolwich brand has been dropped. So guess I'll be speaking to Barclays now and asking what they are doing, not least because they've also added an extra £96 to the total mortgage - there's no ERC for overpayment or redemption because there wasn't any and this was confirmed last year too. So it looks like their own mistake again by refunding and adding a redemption such that they've automatically charged for it. BUT, there's no ERC charge payment on the statement and £96 has mysteriously appeared and been added to mortgaged total to repay this month.


What a mess. Take my advise people and avoid Barclays for a mortgage. They can't manage simple addition or subtraction. And when you ask them to sort it out, they manage to mess up your payments systematically year on year and charge you for something that's not even your fault. It's so frustrating considering they are a Bank and should know this stuff, not least that they make their own stupid mistakes customer chargeable. I'll see what they say this week to hopefully and rightfully get some money back if they're nice and can see what they've done. Otherwise I am sending all my annual statements to the FCA because I'll be done with them if they don't play nice.

Edi81

To answer your point on banks increasing rates before the BOE rate increase.

The BOE doesn’t lend to the banks. The banks borrow from each other paying a rate called LIBOR. You may recall this is the benchmark reference rate that was rigged by some of the bank traders a few years ago.

LIBOR has been increasing for some time and the associated swap costs have increased too. The swap costs allow the banks to fix their borrowing costs for a period of time which then allows them to lend to us customers.

morrismen

All was revealed after chasing long and hard. It appears if you make a mortgage "repayment" with Barclays then it comes off the mortgage just a week BEFORE the anniversary date minus £500. So the £6500 paid off becomes £6000. This is because £500 mysteriously disappears within the 1 year of repaying it 10 months before. What? Well it also appears that Barclays never told ANYBODY that when you pay off some of your mortgage on-line then it will only take it off as a repayment to lock you in for the full term because there is no option on-line for a "Capital" repayment to take it off the capital amount to reduce the term. Unbelievable right! But wait there is more, Barclays have never been sending ANYONE a letter confirm or advise of a repayment where it can be converted into a Capital repayment within 90 days. If you then have to dispute it as a repayment then you had to evidence it yourself to query that it should have been a Capital repayment. And with this, they've now just started sending letters to advise because the FCA got onto the robbing gits. As said before, avoid Barclays for mortgages. They do everything unscrupulously to lock you into a lengthy mortgage, still not giving an option to make a Capital repayment on-line. AVOID.

getmore4less

With my mortgage

Barclays have made it clear that that all payments come off the capital, they don't change the payment(or in other words term) till a trigger point(change in rate and annual review are two) and you can at that point choose to keep the same payment unless it goes up then the payment will change

interest gets added at end of month.

I get monthly statements itemized by day so can see all this happening.

it is quite possible that the £96 you saw on post #13 1 Nov was the monthly interest getting added

when is your normal payment date

Does not explain the £6500 becoming £6000

morrismen

Normally payment date is the beginning of each calendar month and 1st of each month. Interest is added monthly I see in my fixed rate mortgage when the monthly payment comes out.


How after 10 months does £6500 repayment become £6000 when paid onto the mortgage by end of the mortgage year? I challenged it and they said it was that my money was worth less to them over 10 months!


The FCA would be amazed at all this I'm sure.