Could my monthly payment increase when the interest rate falls?
In most cases, a lower interest rate will result in a lower monthly payment - although this is not always the case.
In some cases, following an interest rate reduction, your monthly payment could increase for a number of reasons, all of which are in line with the normal operation of your account. For example, if 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.
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.
If your account is being reviewed, we will be unable to inform you of the reason for the increase in your monthly payments until we complete our investigations. There is no need for you to contact us and you should continue to make your new monthly mortgage payments as usual.