Increase in monthly payment- notice required?

Belle999

My bank has increased my mortgage payment at the end of my deal which I expected to happen. But they did not give me any notice of the new amount due and collected the direct debit on the usual date, taking the new amount. They have now written to me 19 days later telling me the new amount, saying there was an error preventing them from advising me earlier. What are my rights in this respect? Should they be compensating me?

Nick_C

Compensating you for what? How have you lost out?

getmore4less

Your original agreement would have had the details of the change.

If the follow on rate has changed then they should notify what the new rate/payment will be at the end of the fix.

The difference for one month is likely to be small and could be negative.

[Deleted User]

You can reclaim it from them under the DD guarantee, then immediately pay it back to them, plus any late fees.

molerat

They should, if you ask, pay back the difference between the 2 payments. But that does not mean you do not have to pay, that difference will be added to your account and be accruing interest until the next payments review. They should also refund any fees incurred if that extra payment amount took you overdrawn.

Belle999

Eh.... £220.... not so small!

Belle999

Also its an interest only mortgage

Belle999

For the inconvenience! I was lucky I had enough in my account to cover it but had to draw in other monies to cover the rest of the month to stop me from being overdrawn, Not everyone can do that at short notice

[Deleted User]

But fortunately you were able to, so didn't lose out.

If you had incurred fees, you may have been able to ask for those to be refunded. But you didn't, so all is well.

davidmcn

Belle999 wrote: »

My bank has increased my mortgage payment at the end of my deal which I expected to happen.

If you expected it to happen then what's the problem? Why couldn't you calculate the new amount by yourself?

blues

Compensation for what?