Mortgage payment increase day before due

Our mortgage is due tomorrow. Since day one our repayments have been €814. We can view our accounts online, and for the past month the account from which the mortgage is paid has shown a payment pending of €814. Now today it shows payment pending of €920. Payment due tomorrow. There is not enough in the account to cover this as it not our main acc.

We have recieved no notification of an increase, and to date any interest increases have resulted in less capital paid off the loan, not increased repayments.

Can they do this with no notifiaction? Have no proble paying what we owe- but advance warning would be nice!

Thanks

Havana said:

and to date any interest increases have resulted in less capital paid off the loan, not increased repayments.

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What sort of loan is this? I've never heard of a fixed repayment loan that worked this way (as opposed to a fixed rate loan).

Did any interest rate increase kick in? Did you finish on a fixed rate term and revert to variable/tracker?

Surely your lender can tell you why the repayment amount has gone up? Have you read the terms & conditions of your loan agreement to check what the lender can and cannot do in this context?

We have an NIB offset mortgage.

Plan to ring them in the morning- only noticed it this evening and too late at that stage. Thought maybe someone might have an idea here.

We too were surprised when our repayments never went up,what with all the talk of mortgage increases, (should've asked!! At the time the lower payments suited us) and it was only later when looking back over our mortgage statement we realised that more interest was being applied. By this I can only assume that interest rate increases did kick in.

Mind you the amount of hassle we have had with them i wouldn't be surprised if they have royally messed up our account over the last couple of months.

Thanks

Some banks offer a lower rate for the first year - could it be that now the first 12 months are up and you are reverting to the normal rate?

I have had this problem too with the NIB discount variable rate. Since last december they have been applying the interest rate increases to the account but not increasing the monthly repayments. The proportion of the interest repayment has been going up but each time there is a rate increase I've been paying back less capital. I have been in and made enquiries over the phone over the last few months (very unsatisfactory response) and finally last week got it sorted out (I think).
I was told that it was a problem during the take over by Danske Bank and it was only happening with the Discounted Variable Mortgages. That obviously isn't the case though.
Get into to your branch asap and insist that they sort it out now as you are technically underpaying your mortgage, even though they won't tell you that you are behind.
I have to say when I fist took out the mortgage with NIB I thought they were very good and it was very easy to contact the branch. Since the takeover though it has become much more difficult.
I have asked for a letter in writing to confirm that things are now back on track with my mortgage but as yet I am still waiting for that.

Excuse my ignorance, but what's an offset mortgage?

An offset mortgage is basically where money in your current/ savings account is 'offset' against money owed in mortgage acc. So for example if I owe €180000 on my mortgage but have 20,000 in my currnet and saving account I only pay interest on €160,000.

I'm not worried about the increase- my concern is the lack of notification, and the fact that had I not noticed it the acc would have overdrawn and fees would have kicked in.

I spoke to the branch and apparently they did send me a letter - on Monday the 9th, 2 days before due date.

We are currently switching mortgages, hopefully the next lot will be better than NIB.

Havanna,
I asked PTSB a few weeks ago what would happen in a situation where I didn't have enough money in my account. I'm always ok (so far) as it comes out of my current account, into which my salary goes.
They said if there wasn't enough money the mortgage withdrawl would be re-attempted about 10 days later.
Then if there was still no money I would be penalised - soemthing less than 5 euro.

Maybe your bank is the same

Thanks Havanna, silly me of course I've heard of them, just forgot!! I hope all goes well with new mortgage. I'd be very annoyed at this situation. As turtle says it would be different if account was to receive regular deposit but in your case, you could have gone on holiday, not looked up account or for a number of reasons, ended up paying charges which were incurred through no fault of your own. You might be able to make a case for having these refunded but the point is that the lender should have been more on the ball.