Mortgage Interest Rate Changes Q & A's
Select a question to jump to it:
- How do I change my payment?
- Why is there a delay between the date that the interest rate changed on my account is changed and the date that my payments are changed?
- What does APR mean, and what does it represent?
- Why has my payment changed when my mortgage is on a fixed rate product?
- What if I have made an arrangement to pay a different amount or my account is in arrears?
- What if my name and address details are incorrect?
- Where can I find further information?
How do I change my payment?
If you pay your mortgage by Direct Debit, you do not need to do anything as we will automatically change your payment from the date shown. If you do not pay your mortgage by Direct Debit you will need to ensure that your new payment is made from the date shown. This could be a good time to consider paying by Direct Debit. If you would like more information please call our Lending Call Centre on 0845 3002627 (Lines Open: Monday - Saturday, 8am to 8pm.Calls charged at local rate).
Why is there a delay between the date that the interest rate changed on my account is changed and the date that my payments are changed?
This is to ensure we give our customers at least 14 days written notice before their payment is changed. If your payment is due between 1st and 7th day of the month your existing payment amount will not change for 2 months following the date of the rate change. If your payment is due after 7th day of the month your existing payment amount will not change for 1 month following the date of the rate change. This will mean that between the date of the interest rate change and the date that your new monthly payment is collected, there will be a difference in the interest charged and the interest collected. This amount will be taken off your mortgage balance when interest rates go down and added to your mortgage balance when rates increase.
What does APR mean, and what does it represent?
APR stands for Annual Percentage Rate. It is the real cost of a loan based on the rate of interest, the frequency of repayments and any other costs associated with the mortgage. It provides a better guide to comparing mortgages on a like for like basis from different financial institutions.
Why has my payment changed when my mortgage is on a fixed rate product?
This happens if your mortgage is spread over one or more fixed rate mortgage products.
As your loan is operating on more than one fixed rate product, the interest rate charged to your loan is an average rate of the products that apply to each part of your loan. If the balance on your loan has changed then the average rate will also change. We will review your average interest rate each time our standard variable rate changes. This applies even if one or all of your products is a fixed rate.
What if I have made an arrangement to pay a different amount or my account is in arrears?
If you currently have an arrangement to pay an additional payment or reduced amount, the new payment does not take this into account. If you pay by Direct Debit, we will collect the arrangement amount that has been agreed with you. If you do not pay by Direct Debit, please continue to make the payment that you have agreed with our Collections Team or contact them to review your arrangement.
What if my name and address details are incorrect?
If any of your details are incorrect, please let us know in writing and send the relevant documentation to our Lending Correspondence Team at the address shown below.
Marriage:
Original/Certified Copy (O/CC) of your Marriage Certificate
Reverted to Maiden Name:
As above or O/CC of your Birth Certificate Deed Poll:- O/CC of the Change of Name Deed
Lending Correspondance Department
Birmingham Midshires
PO Box 81
Wobaston Road
Wolverhampton
WV9 5BR
Where can I find further information?
For information on your new payment, please contact our Lending Call Centre on 0845 3002627 (Lines Open: Monday - Saturday, 8am to 8pm.Calls charged at local rate).
For information on DSS payments, arrears or arrangements to pay a different amount please contact our Collections Team on 01902 302833
You can also email us at lending@birminghammidshires.co.uk
Calls may be monitored and recorded for security and training purposes. 0845 numbers may not be available outside the UK. Calls from BT landlines will cost a maximum of 4p per minute plus a 6p call set-up fee. The price of calls from other telephone companies and from outside the UK will vary. The call price is correct as at today's date.
Our tracker rate mortgages are linked to Bank of England base rate (also know as Bank of England repo rate). Details of this rate can be found on the Bank of England website or in the Financial Times or other leading newspapers.
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