Fixed rate mortgage, payment increased!

Liz33

Hey,

I have a fixed rate mortgage with Halifax and its not due to expire for another year and a half but I got a letter yesterday informing me of the standard rate change and telling me my payment will change next month to £516.00 from £513.00. I haven't missed any payments, added anything on etc in fact I pay a small amount extra off each month when I empty my mortgage pig but when I rang, Halifax just said because I hadn't paid this month's yet (the payment when out yesterday, on its due date) the computer calculated this payment. I asked whether this would re-calculate but was told it wouldn't.

Does anyone have any ideas why because I just don't understand the explanation given on the phone? Has anyone else had this happen?

Thanks

Rabiddog_2

A difference of 0.6% is not worth getting excited about. It could be that they now credit your payment on a different day or work out the interest in a different way. Pay an extra months up front and see what happens??

Noz

Have any fees been added to the mortgage? such as an arrangement fee?

MarkyMarkD

If you are only six months into a 2 year fix, it's very likely that it's for the reason that Noz states - i.e. something was added to the account at the start of the fix, which didn't get counted in the interest-bearing balance up front, but which you didn't pay off during the year and will bear interest from 1 January 2008.

Equally well, it could be due to the timing of payments - but it's a bit strange if they are working out the end of year balance at a funny time in the month so effectively a payment gets missed out of the calculation.

MortgageMamma

perhaps your arrangement fee which is added to the loan is on a different interest rate, for example standard variable rate as opposed to the fixed rate?

Noz

MortgageMamma wrote: »

perhaps your arrangement fee which is added to the loan is on a different interest rate, for example standard variable rate as opposed to the fixed rate?

That's my suspicison

MortgageMamma

halifax used to do that a while back and I've not heard of a change in policy so I suspect it is the case. I've got clients where the same thing is happening but i think the op should call halifax and get someone there to explain it properly to them

jonesMUFCforever

Is your home insurance included in your mortgage payment?

OverlandLandy

Liz33 wrote: »

Hey,

I have a fixed rate mortgage with Halifax and its not due to expire for another year and a half but I got a letter yesterday informing me of the standard rate change and telling me my payment will change next month to £516.00 from £513.00. I haven't missed any payments, added anything on etc in fact I pay a small amount extra off each month when I empty my mortgage pig but when I rang, Halifax just said because I hadn't paid this month's yet (the payment when out yesterday, on its due date) the computer calculated this payment. I asked whether this would re-calculate but was told it wouldn't.

Does anyone have any ideas why because I just don't understand the explanation given on the phone? Has anyone else had this happen?

Thanks

2008 is a leap year = 1 extra days interest?

MarkyMarkD

Good point, but that shouldn't cause an increase of this extent as 1/365 x £513 is around £0.70 not £3.

Liz33

Hi,

Thanks for all the ideas, i'm going into to see the mortgage lender in the bank when they are back on Friday as the person on the phone couldn't offer any explaination.

I paid all my arrangement fees up front(as far as I am aware!) and I don't have my home insurance with the Halifax so I can't think of what else it could be but i'll let you know what they say.

Liz