Mortgage term lower than agreed with the lender

kokolino23

Hello,
I did apply for a remortgage in April 2022 as my deal was coming to an end in October 2022.
The mortgage offer from the lender says 2 years (24 payments) with a fixed rate to 31/08/2024.
Completion was done on 04/10/2022 and I've received an email from the current lender to say that my mortgage will change to a SVR from 01/09/2024.
My first mortgage payment was taken in November 2022 and up to August 2024 I will make 22 payments. 
My question is why only 22 payments and not 24 as mentioned on the Mortgage Offer? Duration of the loan is 2 years and 0 months but they've cut it short by 2 months.
The amount payable to them over this period is not the same as the one mentioned on the Mortgage Offer because of the 2 months difference. Is that normal?!
Thank you

housebuyer143

"The mortgage offer from the lender says 2 years (24 payments) with a fixed rate to 31/08/2024"

You have answered your own question. It has a fixed date to end 31/8/24. If you redeemed it in June 22, then it would have been over 2 years. Many lenders have fixed dates like this.

BarelySentientAI

Very normal.

Fixed rates are often fixed until a particular date (like yours is to 31/08/2024) and not for a particular amount of months.

If you applied for a product fixed until 31 August, that's exactly what you got.

kokolino23

housebuyer143 said:

"The mortgage offer from the lender says 2 years (24 payments) with a fixed rate to 31/08/2024"

You have answered your own question. It has a fixed date to end 31/8/24. If you redeemed it in June 22, then it would have been over 2 years. Many lenders have fixed dates like this.

My mortgage with the previous lender was redeemed in October 2022 therefore the 2 years deal with our current lender started at that time. Why do they finish it 2 months earlier?!

kokolino23

BarelySentientAI said:

Very normal.

Fixed rates are often fixed until a particular date (like yours is to 31/08/2024) and not for a particular amount of months.

If you applied for a product fixed until 31 August, that's exactly what you got.

I didn't apply for a product fixed until that date, my application was for 2 years and the offer was for that period. Because the completion was done in October 2022, the mortgage should be for 2 years from that date IMO.

Phoenix72

kokolino23 said:

BarelySentientAI said:

Very normal.

Fixed rates are often fixed until a particular date (like yours is to 31/08/2024) and not for a particular amount of months.

If you applied for a product fixed until 31 August, that's exactly what you got.

I didn't apply for a product fixed until that date, my application was for 2 years and the offer was for that period. Because the completion was done in October 2022, the mortgage should be for 2 years from that date IMO.

But you have already said the mortgage offer was fixed rate until 31/8/24.....so your 'IMO' is based on what exactly?

kokolino23

Phoenix72 said:

kokolino23 said:

BarelySentientAI said:

Very normal.

Fixed rates are often fixed until a particular date (like yours is to 31/08/2024) and not for a particular amount of months.

If you applied for a product fixed until 31 August, that's exactly what you got.

I didn't apply for a product fixed until that date, my application was for 2 years and the offer was for that period. Because the completion was done in October 2022, the mortgage should be for 2 years from that date IMO.

But you have already said the mortgage offer was fixed rate until 31/8/24.....so your 'IMO' is based on what exactly?

2 years term mentioned on the Mortgage Offer 

MWT

kokolino23 said:

Phoenix72 said:

kokolino23 said:

BarelySentientAI said:

Very normal.

Fixed rates are often fixed until a particular date (like yours is to 31/08/2024) and not for a particular amount of months.

If you applied for a product fixed until 31 August, that's exactly what you got.

I didn't apply for a product fixed until that date, my application was for 2 years and the offer was for that period. Because the completion was done in October 2022, the mortgage should be for 2 years from that date IMO.

But you have already said the mortgage offer was fixed rate until 31/8/24.....so your 'IMO' is based on what exactly?

2 years term mentioned on the Mortgage Offer 

If you really want to stick exactly to the wording you have given for the original offer you would still be tied to the deal for 2 months beyond the end of the fixed rate... I'm sure you don't want that ...

You can't get past the fact that the fixed rate had a stated end date, which is very normal for many lenders.

BarelySentientAI

kokolino23 said:

Phoenix72 said:

kokolino23 said:

BarelySentientAI said:

Very normal.

Fixed rates are often fixed until a particular date (like yours is to 31/08/2024) and not for a particular amount of months.

If you applied for a product fixed until 31 August, that's exactly what you got.

I didn't apply for a product fixed until that date, my application was for 2 years and the offer was for that period. Because the completion was done in October 2022, the mortgage should be for 2 years from that date IMO.

But you have already said the mortgage offer was fixed rate until 31/8/24.....so your 'IMO' is based on what exactly?

2 years term mentioned on the Mortgage Offer 

So you want to be held to 22 months at the low fixed rate, then 2 months at the ~8% SVR that the Mortgage Offer states?

I don't think you do.

You've got confused between the title of the deal and the actual terms of the deal.  Look at the product again - "Fixed until 31/08/2024" - that is exactly what they have done.  This is normal.  Sometimes it lines up a little bit longer than name, sometimes shorter.  This time around, check what you are actually signing.

Hoenir

Out of curiosity what was the date of your mortgage offer? 

ACG

2 years with most lenders means 2 years give or take - its accepted within the industry and by the FCA/FOS providing they confirm when your deal actually ends. 
What they usually do is launch a product with around 27 months on it, they work on the assumption most people will complete within 3 months and so will end up with 24 payments. However, if you complete quicker or slower than the average, that will alter the payments.

Some lenders (typically the adverse lenders, building societies and nationwide) will do it for a fixed 24 payments. The larger lenders work on the fixed end date as I believe it helps them with knowing when to expect large volumes of calls/admin etc. 

It looks like it took you around 6 months to complete, that is quite slow. Its not a problem, but as your offer says your repayments are fixed until a set date.