Ready, steady… save!
You don’t need a chart to join in. Here are 2 ways to record your savings:
1. Cross it off
Pop a chart into your first post. Saved an amount? Cross it out! Read more »
£0.01 £0.02 £0.03
2. Write it down
Skip the chart and add updates to your first post. Read more »
“Another +£3 saved today. Go me!”
Use +£ before each new saving so it counts towards your total.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Can a Interest only Mortgage Balance increase?
nxf
Posts: 16
Forumite
I have a 25 year Barclays Buy-to-let Interest only Mortgage which started on 2013.
I have never missed a payment.
For 12 years the balance has remained the same. In February 2025 they have started using a new calculation which means my balance is slowly creeping upwards. Are they allowed to do this mid term?
Its hard to calculate the exact amount because the spreadsheet they sent to me has a few errors which means it is between £100 & £200 a year.
I have complained, they refuse to listen so will send me a final response letter I can take to the ombudsman
I have never missed a payment.
For 12 years the balance has remained the same. In February 2025 they have started using a new calculation which means my balance is slowly creeping upwards. Are they allowed to do this mid term?
Its hard to calculate the exact amount because the spreadsheet they sent to me has a few errors which means it is between £100 & £200 a year.
I have complained, they refuse to listen so will send me a final response letter I can take to the ombudsman
0
Comments
-
I can understand it increasing a few pounds a year due to rounding. Between £100 and £200 a year sounds a lot though. This doesn't include charges, for example when you go to a new term?1
-
I'd expect it to increase from the beginning to the end of a month then fall back once the payment has been received.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
-
Thank you. There are no charges added. The reason they gave for the higher balance is they transferred my account to a new system.
They also changed the instalment due date. It used to be the same day as the direct debit (3rd). The d/d day is still the same but the Instalment date is now the 16th. This means when you get a new rate switch for example, they calculate using a higher balance.
This appears appears wrong/crafty/dishonest/illegal? to me as I expected the balance to be the same at the end of the mortgage as it was at the start because it had done so for 12 years and its interest only I am paying.0 -
Did you do a rate switch in early 2025 or there abouts? If so what effective date for the switch did you choose? Of your mortgage payment went up due to a rise in rates, did your payment go up the same month at the rate switch or the next month?0
-
as interest is accrued daily could it be this change that has affected the balance as an additional 13 days interest addednxf said:
They also changed the instalment due date. It used to be the same day as the direct debit (3rd). The d/d day is still the same but the Instalment date is now the 16th. This means when you get a new rate switch for example, they calculate using a higher balance.0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 355.9K Banking & Borrowing
- 255K Reduce Debt & Boost Income
- 456.2K Spending & Discounts
- 248.4K Work, Benefits & Business
- 606.1K Mortgages, Homes & Bills
- 179.1K Life & Family
- 264K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.7K Read-Only Boards