Early repayment charge

BeeVtako

Hi everyone, 

I have a fixed mortgage deal that is due to come to an end in July 2027 and I started this deal in 2022. All was going fine until I was shocked to see my direct debit had increased by £8. I phoned my provider for an explanation and was told that they do an annual recalculation on all mortgages (fixed or not) to make sure you are on track with your payments. So far, I completely understood what was being said. However, in my situation where I haven't missed a payment, overpaid or underpaid why is my monthly payments increasing. I was told for my particular situation it's because it's only the rate that is fixed not the monthly payments? I was always under the impression that was the main reason for having a fixed mortgage deal, that your monthly payments will stay the same. I have spoken to 4 different people on the mortgage team and been told all different things - one of which was that it's an FCA rule that was introduced in 2023. I phoned the FCA to check and that is not the case. 

I asked for this rule that they have to be written to me as I have gone through my mortgage illustration and can not find anywhere that they can change your monthly payments on a fixed deal unless you missed a payment, overpaid or underpaid. 

I have received a letter not about the rule but telling me that because I came out of my previous deal early and paid the ERC. They paid it off my total mortgage balance and haven't realised until now 2024. So my current mortgage deal that I took out was for the wrong amount. It sounds like all one big mess and it's still on going. It's been incredibly stressful being told all different things! 

My question is do the ERCs come off the balance or is it just a separate payment that should not come off the balance? 

Thanks

penners324

Sounds like a question for your Conveyancer.

The mortgage company would be right in adjusting your repayments if a mistake had been made on setting up the mortgage and including the ERC