Mortgage Charge/Process Question

tekakob

Hi,
I'm trying to understand the following technical points around how mortgages work and was wondering if anyone can please explain it to me.
If you miss a payment and then pay it off after say 2 weeks with the late payment fee added to your balance:
- Would you then expect your monthly payment to be recalculated and be a different amount from that point forwards across the term?
- What would the increase in your mortgage balance actually be, obviously it would be the late fee and the payment you missed. But would you also get charged 2 weeks of interest on a balance that was higher that it would have been if you had made the payment on time? Or is that interest only calculated/applied monthly?

Secondly and in the same area, is it typical for monthly payments to always be recalculated if your balance changes for any reason, either up or down? e.g. an over payment? Are there cases where they don't bother recalculating or updating direct debits? Maybe they just leave it the same and you end up paying it off before the end of the term?

Thanks

Thrugelmir

Only time that a monthly mortgage payment is normally recalculated is at a switch of product or at a change of interest rate. Over the entire term of the mortgage this will sweep up any shortfall / additional charges levied.