Mortgage company keeps lowering my payment

edited 30 November -1 at 1:00AM in Mortgages & Endowments
3 replies 536 views
sharptingsharpting Forumite
3 Posts
edited 30 November -1 at 1:00AM in Mortgages & Endowments
Afternoon all.

I have a 5 year fixed rate mortgage that I overpay on by the 10% allowed each year without early repayment charge. I signed an agreement that said I will £313.87 per month for the duration of my fix. However, it seems that the company does a review every March and each time decides I should be paying less. The first amendment came after 5 months of the start of my mortgage (£307) and now I have another amendment for this March saying it's dropping to £273.

My question is, can I stop them lowering the payment each time? I'm hoping to pay this off after my fix is over and each time they lower the payment my total payback increases which is extremely frustrating.

I have asked the question directly but didn't want believe their answer :)

Thanks in advance

Darren

Replies

  • ThrugelmirThrugelmir Forumite
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    If you increase you repayments you'll exceed the 10% annual limit.

    As they say you can't have you cake and eat it.

    So you need to make the overpayment as early in the year as possible. To gain any advantage.
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • dimbo61dimbo61 Forumite
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    I requested my lender to keep my mortgage payments static and have therefore paid the same amount for the last 7 years even though we have overpaid every month.
    By asking for your mortgage payment to remain static you are reducing the term and not your monthly payments
  • dimbo61dimbo61 Forumite
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    Can you find out if it is possible to reduce the term?
    We paid £50 to reduce the term from 22 years down to 10 and hence up the payments.
    Ask your lender
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