Fixed rate mortgage ?

Heathersam

Hello

Please can anyone  help me.

My mortgage has 2 years 7 months left. On 29th October 2019 I took fixed rate mortgage  of £494,88 per month by going into bank for meeting with adviser.

Today I received a letter from Lloyd’s to say as from May this is going up to £514,94 per month.

I spent an hour on the phone and all they said was it is their annual review. Really unhelpful- then they said I will have another annual review as I applied for a mortgage holiday 

Nothing written in the terms of contract I took out in October about the rate changing ?

I can’t afford another £20 per month .

How can they do this when it is fixed rate ?

I thought fixed rate meant fixed rate ?

Please help
thankyou 

davidmcn

The interest rate remains the same, but your remaining payments will go up to cover the missed payments during the mortgage holiday (assuming you got the letter after applying for it). 

kuratowski

Yes.  The fixed rate means the interest rate is fixed, it doesn't mean the payments are fixed.  By taking the 3 months' holidays you are actually in arrears, although it has been agreed this won't affect your credit report.

If this is unaffordable, why not ask whether you can extend the mortgage term?  I.e. repay over 3-4 years instead of the current 2 years 7 months.  That way the extra payment will be spread over a longer time period.

onlyfoolsandparking

Are you saying you payment is going up BEFORE you applied for payment holiday as that is what your post reads like to me?