Birmingham Midshires increased my fixed rate mortgage payment?

Birmingham Midshires increased my fixed rate mortgage payment?

9:25 AM, 22nd October 2021, About a month ago 21

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I have been with Birmingham Midshires since 2017 under an interest-only 5 year fixed rate buy to let mortgage. They have recently written to their customers informing them that they have migrated onto Lloyds Bank systems (who own BM) and as a result, changed the dates they calculate mortgage payments which then created for me an additional £486 of additional interest to pay.

They are now taking this sum via increased direct debit payments from our account. When we complained, and I understand many of their customers have done so for the same reason, they cannot logically explain why we should be paying more money under our fixed mortgage just because they decided to go on a different system.

They have issued what looks like a standard response letter which does not clarify the position at all, and indeed they argue that they are entitled to make changes to the payment!

We are now going to the Ombudsman amongst other potential agencies and I wondered if anyone else on this forum has been impacted by this and what they are planning to do about it.

All comments would be appreciated.

Eren



Comments

by Piyush Patel

9:51 AM, 22nd October 2021, About a month ago

I've encountered the same issue on my variable BTL mortgages with BM; I cannot see the logic of seeing increasing payments by switching systems. It seems complaining to BM will not add any value. I would be interested in what the Ombudsman view is on this matter.

by Kathy Evans

9:59 AM, 22nd October 2021, About a month ago

Same here

by Francois

10:14 AM, 22nd October 2021, About a month ago

I've encountered the same issue. I have raised an official complaint, but I only get text messages asking me to wait. Verbally I was told that the extra cost is due to a “system” change.
Even if it’s unlikely that this will be a common occurrence, this isn’t something I would expect during a fixed mortgage term.

by Harry Chunk

10:15 AM, 22nd October 2021, About a month ago

I see this as another PPI type claim. It is funny how the increase is in their favour.
We need to get enough people together to pursue an action against them. I am worse off by £10 per month but the property is being sold so at the end of the day so it is small beer but irritating to say the least.
By my reckoning bank interest is always calculated the same way, that is:- Borrowed sum times interest rate divided by 365 gives daily rate, times the number of days money borrowed for.

by Rbinscotland

10:24 AM, 22nd October 2021, About a month ago

Same but not only increased payment in 14 mortgages in there favour. But messed up the overpsyments and messed up the accounts also. Different amounts, all wrong, all increased and paid to the wrong account.

All you get when you call..........sorry you didn't tell us you wanted to keep making overpayments. Presuming I need to tell them every month repeatedly or as in the last 12 years tell them once until I want to change it.

Crazy

by Kerry Hayward

10:29 AM, 22nd October 2021, About a month ago

Yes, same issue with my 5-year fix, monthly repayments have increased. I've spoken with BM and registered a complaint, a reply is promised, but as it will come from an internal department is unlikely to say anything new.
I look forward to the ombudsman's report.

by Adrian Alderton

10:31 AM, 22nd October 2021, About a month ago

Yes I see mine has gone up but only by 72p a month. In their letter they specifically say this not because of system changes. The letter goes on to say it is either due to adding charges or standard costs to your account or unpaid interest due to arrears (I have no arrears).
On their payment breakdown they have added a charge of £129.51 under the heading repayment at 0% ! Presumably my repayment to pay for their new system.
My fixed term ends soon and I will no doubt be moving on to another lender. They offer a product switch however they are always at higher 'rip-off' rates that offered on the open market.

by Jaye

12:26 PM, 22nd October 2021, About a month ago

I have the same issue too. They increased my fixed for no reason. Called and asked for an explanation and they couldn't explain. I insisted on speaking to a manager but said he was in a meeting. He then said he would get someone from the back office to write to me of why the increase and should expect a letter in 7-10 days. It's been 3 weeks and no letter or phone call.

by DGM

14:14 PM, 22nd October 2021, About a month ago

I have the same with 3 I have with BM.
Confused how my payments can increase when I am in a fixed rate with them. Once the fixed rate is up will look to move to another provider

by Gra Rock

15:17 PM, 22nd October 2021, About a month ago

Recommend people look into historical articles (on this site) relative to West Brom Mortgage Co... about 4 years back they forced a contractual interest rate change through on borrowers and ultimately the 118 'team' led a successful court challenge.

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