Could my monthly payment increase when the interest rate falls?
There are a number of important factors that can affect your new monthly payment when an interest rate change occurs, so your new monthly payment amount may differ from your own calculations.
In most cases, a lower interest rate will result in a lower monthly payment, however sometimes it can increase.
The increase in payment could occur for a number of reasons, which are in line with the normal operation of your account. For example, differences can arise where you have;
- incurred any additional fees and charges;
- taken a payment holiday;
- not paid ground rent/service charges and we have paid these on your behalf;
- made reduced monthly payments for any reason;
- missed any monthly payments for any reason.
If you have any questions about an increased mortgage payment, just give us a call.
The impact of these differences on your monthly payment may be exaggerated if you only have a short outstanding term remaining on your mortgage or loan.
In a small number of cases, there may be other reasons why your monthly payment has increased that we need to investigate. We are currently reviewing impacted accounts and will contact you if necessary after our investigation is complete to update you with our findings and determine what, if any, actions we need to take.