# Fixed rate mortgage - increased Payment?



## robertdon777 (Nov 3, 2005)

I've had a fixed rate mortgage for the last 15 years. Mostly with the nationwide. Today I received a letter saying they are increasing my payments by £1.22....very odd I thought so I gave them a call.

Gave the chap a brief history of my policy that I signed up for 7 Years ago for a fixed rate over 10 years and asked why there would be any increase. He said they had ran my numbers through a new calculator and figured that they need to increase my payments an extra £1.22 to cover the mortgage over the remaining 3 years.

I questioned this and asked if they could calculate it on the calculator they used 7 years ago and to the mortgage payments I agreed and signed to. He said no so I asked to be put through to the complaints department. The lady that answered did agree with what I was saying and they will come back to me before 8pm Monday.

So has anyone else ever had an increase in payments on a fixed rate mortgage? and if so what was the reason?

Rob


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## danwel (Feb 18, 2007)

Surely a fixed rate is a fixed rate!! Did you really fix your mortgage for 10 years or have i read that wrong/


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## robertdon777 (Nov 3, 2005)

danwel said:


> Surely a fixed rate is a fixed rate!! Did you really fix your mortgage for 10 years or have i read that wrong/


Yes really! Was a bad move looking back but that's the risk of fixing. Will be swapping this year to a better rate fixed for the remaining 3 years, will be much better off even paying the redemption penalty.

And yes as I understand (well for the last 15 years of payments) fixed has always been fixed!


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## MDC250 (Jan 4, 2014)

If they've ****ed up on the calculation that's surely their look out and they'll have to swallow it.


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## danwel (Feb 18, 2007)

MDC250 said:


> If they've ****ed up on the calculation that's surely their look out and they'll have to swallow it.


Yeah exaclty. Fixed is fixed and no matter what they have done it is their mistake and surely they can swallow that as it isn't mega bucks.

Would they have been in touch to tell you if you had over paid for the last 7 years?? No they bloody would not!!


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## robertdon777 (Nov 3, 2005)

I just can't see how they can change a fixed payment to cover a fixed amount owed.

Especially when I've been paying it for 7 years already.


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## danwel (Feb 18, 2007)

robertdon777 said:


> I just can't see how they can change a fixed payment to cover a fixed amount owed.
> 
> Especially when I've been paying it for 7 years already.


Sounds like an absolute load of garbage.


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## robertdon777 (Nov 3, 2005)

Can't wait to see what they come up with Monday. The first lad was a tool on the phone. "The calculator has worked it out, it can't be changed this will be your new payment".... Do one mate I didn't sign for that "fixed payment". I'd rather leave nationwide than pay the £1.22 just out of principle.


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## danwel (Feb 18, 2007)

robertdon777 said:


> Can't wait to see what they come up with Monday. The first lad was a tool on the phone. "The calculator has worked it out, it can't be changed this will be your new payment".... Do one mate I didn't sign for that "fixed payment". I'd rather leave nationwide than pay the £1.22 just out of principle.


They won't make you pay that, they will back down as the last thing they want to do is lose you as a customer as you will be on a significantly higher rate than most of their customers


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## lofty (Jun 19, 2007)

So they have gone to the trouble of recalculating your payment, sending out letters etc for 40 odd quid, seems like bad business to me, especially considering they will have made a mint out of you over the last 7 years with low rates for the last five or six of those years. If you weren't tied in for another 3 years I'd be telling them where to shove their £40.00 and any further mortgage.


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## NiallSD (May 21, 2013)

I would imagine they would honour the original agreement mate. 

I work in the industry and all you need to do with stuff like this is complain. It's not your fault they calculated wrongly


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## robertdon777 (Nov 3, 2005)

I think I will be telling them where to shove it tbh.

They've had 7 year of 5% which has been good for them!

The redemption is only about £2300 so I will save that in less than a year on a below 3% fixed rate that is available just about anywhere.


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## danwel (Feb 18, 2007)

robertdon777 said:


> I think I will be telling them where to shove it tbh.
> 
> They've had 7 year of 5% which has been good for them!
> 
> The redemption is only about £2300 so I will save that in less than a year on a below 3% fixed rate that is available just about anywhere.


5% isnt too bad. I fixed mine before the crash for 5 years and it was abut 6.5%!!!!

i am now on base rate plus 2% as my fixed period had ended


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## MDC250 (Jan 4, 2014)

danwel said:


> 5% isnt too bad. I fixed mine before the crash for 5 years and it was abut 6.5%!!!!
> 
> i am now on base rate plus 2% as my fixed period had ended


Ha, I fixed as well just before the crash for 5 years at 4.99% thinking rates would shoot up. Note to self, speak to people who actually know what they are on about! Lesson learnt for future now paying less on SVR.


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## danwel (Feb 18, 2007)

MDC250 said:


> Ha, I fixed as well just before the crash for 5 years at 4.99% thinking rates would shoot up. Note to self, speak to people who actually know what they are on about! Lesson learnt for future now paying less on SVR.


Well mine was after speaking to a financial advisor!!! incidently i haven't used them this time round!


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## MDC250 (Jan 4, 2014)

Crystal ball mate I guess.

Just coming to terms with what we thought was our dream home has been ruined by 3 sets of planning applications and undesirables moving into the area.

Just need another £100k to move 12 miles up the road


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## danwel (Feb 18, 2007)

MDC250 said:


> Crystal ball mate I guess.
> 
> Just coming to terms with what we thought was our dream home has been ruined by 3 sets of planning applications and undesirables moving into the area.
> 
> Just need another £100k to move 12 miles up the road


Bummer mate, we are just waiting for our new build to be ready and we are hoping to be in and settled for crimbo but it is going to be close especially with me bieng offshore formthe 8th to the 23rd of December so the wife may well be moving in on her own if the keys are ready after the 8th lol


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## MDC250 (Jan 4, 2014)

Fingers crossed for you for before then!


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## danwel (Feb 18, 2007)

MDC250 said:


> Fingers crossed for you for before then!


I get home in 11 days so am going to pop in for an update as the last pic i got had the roof on and was told that the windows should have been fitted to since the pic so we pretty much have everything crossed as we are living in a very old farmhouse and it is freezing and very drafty. Think it went down to 9 degress the other night according to the baby monitor!!

it has night storage heaters so not worth a [email protected] but th eliving room is nice and toasty once we get the fire going with logs and coal but it does send you to sleep!! For the first couple of weeks i was struggling to get past about 9.45 without falling to sleep lol


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## pxr5 (Feb 13, 2012)

Is there a smaller sub-account linked to the mortgage? If so it may be this that has prompted the increase. I had one on a fixed mortgage for about £800, that was paying back as slowly as the mortgage; I would have ended up paying so much back. There was no redemption penalty on that element so I cleared it ASAP.


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## robertdon777 (Nov 3, 2005)

pxr5 said:


> Is there a smaller sub-account linked to the mortgage? If so it may be this that has prompted the increase. I had one on a fixed mortgage for about £800, that was paying back as slowly as the mortgage; I would have ended up paying so much back. There was no redemption penalty on that element so I cleared it ASAP.


No nothing just as straight forward mortgage as there can possibly be. One amount borrowed on a fixed rate for 10 years.


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## robertdon777 (Nov 3, 2005)

Tried to say it was worked out using a new system how and when they calculate interest/ start/end of month etc.

I just said I'm still not happy as I didn't sign up for that so it now goes back to the society to make a final decision with a letter being sent within 56 days.

On the final outcome I can choose to send the matter to the Financial Ombudsman if i'm not happy.

I think they have just lost a customer of 15 years. I'll take the remaining 3 years elsewhere thank you.


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