Monthly payments higher than expected!

fryderykchopin

I have my mortgage with HSBC, 5 year fixed rate until June 2025. My LTV is about 52%. I applied and received an offer in February with a mortgage illustration of £535 per month. I completed last week and now I receive a letter saying that my monthly payment will be £566 per month. If the interest rate is fixed, how come they charge £30 per month more? Does it mean I’ll end up paying a lot more at the end of the mortgage?

MovingForwards

Is that your first payment as that is usually higher due to the interest on the mortgage from drawdown to the first payment date. The second month and beyond will then be £535.

fryderykchopin

MovingForwards said:

Is that your first payment as that is usually higher due to the interest on the mortgage from drawdown to the first payment date. The second month and beyond will then be £535.

No, the first payment will be £616 and then £566 from the following month on 

getmore4less

how is anyone supposed to be able to say why there may be a difference when you provide no (relevant) information?

What amount, rate and term were on the illustration and the actual mortgage you signed up for

comeandgo

Did you add any broker costs to the mortgage or a mortgage fee?

fryderykchopin

getmore4less said:

how is anyone supposed to be able to say why there may be a difference when you provide no (relevant) information?

What amount, rate and term were on the illustration and the actual mortgage you signed up for

The mortgage offer came with the same illustration I was given at application stage.

House price is £170k, mortgage loan is £90k for 15 years. No mortgage fees or any other fees, 5 year fixed rate at 1.69%.

I have checked online calculators and they give the same amount I’m supposed to pay, which makes me think that the mortgage illustration was incorrect?

fryderykchopin

comeandgo said:

Did you add any broker costs to the mortgage or a mortgage fee?

There is no mortgage fee in my case and no broker as I dealt with the bank myself.

motherofcats

Phone the mortgage company and ask them

getmore4less

So close probably the explanation, check the full term on the illustration
15y £90,000 1.69% £566.40
16y £90,000 1.69% £535.31 

fryderykchopin

getmore4less said:

So close probably the explanation, check the full term on the illustration
15y £90,000 1.69% £566.40
16y £90,000 1.69% £535.31 

So it looks like the mortgage illustration was not correct. I was worried that I would end up paying a higher interest than I was told, but it seems this is the right amount to pay (even though it isn't what I was expecting). Thanks

dimbo61

Could it be your age ? Or when you applied you were one year younger ! 
Hence the mortgage is now only over 15 years and not 16