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TSB Mortgage Increase
pramsay13
Posts: 2,178 Forumite
I have a TSB buy-to-let mortgage and I got a letter in November stating that the fixed interest rate would end on the 1st December 2018 and my payments would increase from £291.18 to £559.44 on the next payment date after that.
My normal monthly payment date is the first of the month, so I thought it would come off as normal on 1st December, then January would be at the higher rate, giving me around 7 weeks to organise another fixed rate.
As the 1st December was a Saturday the mortgage payment didn't come off until 3rd December, and it was at the higher rate.
Do I have any cause to complain?
My normal monthly payment date is the first of the month, so I thought it would come off as normal on 1st December, then January would be at the higher rate, giving me around 7 weeks to organise another fixed rate.
As the 1st December was a Saturday the mortgage payment didn't come off until 3rd December, and it was at the higher rate.
Do I have any cause to complain?
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Comments
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I have a TSB buy-to-let mortgage and I got a letter in November stating that the fixed interest rate would end on the 1st December 2018 and my payments would increase from £291.18 to £559.44 on the next payment date after that.
My normal monthly payment date is the first of the month, so I thought it would come off as normal on 1st December, then January would be at the higher rate, giving me around 7 weeks to organise another fixed rate.
As the 1st December was a Saturday the mortgage payment didn't come off until 3rd December, and it was at the higher rate.
Do I have any cause to complain?
How long was the fixed period for? its normally for a set number of months e.g. 25 year mortgage at 60 months at 2% fixed then a further 240 months at the SVR.
How many months/payments was your fixed period for and how many have you paid?Those who risk nothing, Do nothing, achieve nothing, become nothingMFW #63 £0/£5000 -
Usually your mortgage payments ar in advance. So your payment on 1st dec would cover 1/12/18 - 31/12/18.
If your fixed rate ended on 30th Nov/1st Dec then it is correct that the new rate would be payable from 1/12/18.0 -
As G_M suggests, the date the payment is taken is very different from the dates to which it applies.
Interest will be charged daily on your balance. The new rate is charged on the balance as of 1st Dec onwards. The old rate was charged on the balance up to 31st Nov. Whether the payment is taken on 15th Nov in advance or 15th Dec in arrears or any date in between is completely irrelevant to the amount you pay.0 -
Crashy_Time wrote: »
Okay i'll bite.....
I've clicked the link and read the article, even if it is 18 months old, but I have to ask, what does it have to do with the OP's query regarding the end date of his fixed rate deal?Those who risk nothing, Do nothing, achieve nothing, become nothingMFW #63 £0/£5000 -
Okay i'll bite.....
I've clicked the link and read the article, even if it is 18 months old, but I have to ask, what does it have to do with the OP's query regarding the end date of his fixed rate deal?
"Buy-to-let figures plunged 20.4 per cent" could be related to cheap fixed rates coming to an end for BTL.0 -
Crashy_Time wrote: »"Buy-to-let figures plunged 20.4 per cent" could be related to cheap fixed rates coming to an end for BTL.
Okay so what you're suggesting is that the only reason the bank has put the OP onto a variable rate and ended his fixed rate is that ''Buy-to-let figures plunged 20.4 per cent" and not because they signed up for a fixed period and that period has finished?
Yeah okay then......:rotfl::rotfl:Those who risk nothing, Do nothing, achieve nothing, become nothingMFW #63 £0/£5000 -
I have a TSB buy-to-let mortgage and I got a letter in November stating that the fixed interest rate would end on the 1st December 2018 and my payments would increase from £291.18 to £559.44 on the next payment date after that.
My normal monthly payment date is the first of the month, so I thought it would come off as normal on 1st December, then January would be at the higher rate, giving me around 7 weeks to organise another fixed rate.
As the 1st December was a Saturday the mortgage payment didn't come off until 3rd December, and it was at the higher rate.
Do I have any cause to complain?
What would be the point?
As others have already said, the interest you owe is charged to you daily - the monthly payments are just an approximation made to keep you on target for a end date. At the end of the day you will get to the end and the bank will tidy up the pennies. If you're imminently remortgaging, paying some a bit early will just mean you have less debt to transfer to the new bank.
You may have thought you had 7 weeks to take action, but you've mislead yourself. You're already accruing interest charges at the new rate (approx £10 per day more) so those 7 weeks are going to cost you £500.0 -
Okay so what you're suggesting is that the only reason the bank has put the OP onto a variable rate and ended his fixed rate is that ''Buy-to-let figures plunged 20.4 per cent" and not because they signed up for a fixed period and that period has finished?
Yeah okay then......:rotfl::rotfl:
No, I am saying that banks may have to offer less favourable fixed rates in future, even though they may want to attract customers with favourable fixed rates.0
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