Posted on: 22nd Apr, 2010 06:28 am
UK Mortgage - My bank has recently reviewd my mortgage account. I am told that due to banking error and the interest rate crash, that my minimum monthly payment has fallen below the level required to repay the mortgage within the agreed term. Hence, my payments have been substantially increased to meet this requirement. I have an offset mortgage, with savings offsetting approx 90% of the mortgage outstanding balance. How can my morgage payments increase when interest rates have fallen? I have a variable rate mortgage. Thankyou.
Have you defaulted on your mortgage payments? Default payments can be added to your principle amount and the monthly payments can get increased. However, in my opinion, you should speak to your lender and clarify the whole issue. He will be able to explain the whole issue to you.