Mortgage Company Changing Repayments

W

wonders

Guest
Hi,
Was hoping some of you could advise me as to where i stand with the following situation.
Due to my husband being made redundant last year we decided to opt for an interest only option on our mortgage in december. It was granted for 6 months. So, 4 months into the interest only option, our fixed rate was finished so we got the usual offer letter with tracker( + ECB 1.25) the variable and fixed rate repayments stated on it.
The repayments for all options were very attractive but the tracker especially. The letter did not state that the repayments quoted in the letter were based on the temporary interest only period. I called the company and made sure these were definately the new rates no catches, I was told yes they are correct. So we went with the tracker repayments being approx €430pm. Happy days..........

So this morning i received a letter from the Mortgage company stating that now my interst only period was finished my repayments would be approx €970. I am shocked and didnt expect this at all.
Anybody know where i stand. By the way letter confirming the tracker rate and monthly repayments mentioned nothing abot them being based on the interst only.
Many Thanks
 
How did the repayment differ from what you were paying before you came of the fixed rate? What is the balance of the mortgage? what is remaining term? based on the answers here it might have been obvious even if the bank said differently that it was on the interest only basis.
Sounds to me as to a miscommunication/misunderstanding of what the bank said or thought you were asking. It's hateful.
 
when we were on the normal repayments they were approx €1260. Interest only brought it down to €960 pm. So then when the tracker option came up whilst on interst only repayment was only €431pm, i did ring and query with the bank because it was so low but the representitive assured me that €431 was the repayments regardless of the interest only. Dont have that in wrting though.
Balance of the mortgage is approx. €232,000. remaining term is 26 years. I just think that the letter should have specified it was the figure based on the interest only option
 
The significant difference from 960 to 430 should have alerted you which it did and you rightly rang about it. I think it was probably crossed wires. Nothing you can do about it. it is a decent tracker rate though. At least it does not mean you are paying more than you were when on interest only and know that you are also paying down on the capital now too. ECB rate looks to remain low for a good while yet as per last meeting at start of month. Are you managing the payments ok?
 
we will manage them just about but with 2 kids under 3 will be tough enough to be honest and we booked a holiday but sure as they say, your health is your wealth!
 
If you like try the money makeover section filling in all details and you might get some tips as to how to cut back. sometimes it's easier looking in from the outside to be able to point these things out to people. Enjoy the holiday it'll keep you sane.
 
I think it's entirely inapprorpriate to describe this as "hateful".

You had a six month interest only period. Fair play to the bank for giving you that. That expires after 6 months. You knew that.

You came off the fixed rate during the interest only period, so your repayment reduced.

It increased again now that you are coming off the period.

It would be better if the bank's system was smart enough to combine the two separate issues of interest only period and coming off fixed rate. But because it can't do that, it doesn't mean that it's "hateful".

The whole point about flexibility is for the banks and the borrowers to work together to resolve the problems. This means sacrifices by the borrower and not just by the bank. You are not playing your part by spending the money saved on a holiday.

Brendan
 
So interest only repayment was €960 and now you are on a tracker non interest only and it is €970. So effectively you are on as good a payment as when it was interest only but with the benefit of paying back the capital amount also. And you don't seem to realise how lucky you are with that and the tracker! I agree with Brendan above too. Also how could you think you were going from €1,260 to €431? So its more crossed wires, cluelessness on your part than the bank being hateful. And it does seem a little reckless to be booking a holiday when you were interest only struggling with the mortgage and still finding things tough??
 
I would just like to point out that i have never in my entire life used the word "hateful " so maybe reread another posters comment and you will find it there.
Fizzelina we do know how lucky we are to be on a tracker by the way.
I have sent a letter to the mortgage company just saying that they should clarify more what the repayments are based upon in future correspndance with other clients. I got the ahem.. advice i needed. Thanks all
 
That was me that used the term hateful. I didn't mean that what the bank did was hateful but more the situation the OP found themselves in from the crossed wires - as in hateful to have to realise you have to pay 970 instead of 430. Perhaps terrible to realise it would be a better word.
OP sorry that they got at you when it was me that used the term.
 
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