Birmingham Midshires increased my fixed rate mortgage payment?

I crunched the numbers on my accounts and the increase is simply september's DD being capitalised ( in my case for sure). BMS could have explained things better, i know, but it's actually ok!

I have 3 mortgages with BM and have had the same communication. It took some reading to understand it. You won't actually be paying any more. They have added the difference on to the accounts created by changing the date. They are not charging interest on this amount and it is set as repayment rather than interest only to bring the loan amount back to where it was. I doubt there is a case to answer. If you have a problem with it you might be able to ask them to add it to the loan so you can treat it as interest only, I can't fathom why it wasn't done that way. It does seem unnecessarily complicated but your £486 is interest free and will be repaid by the end of the term. Overall, you're not paying any more.

I should have also said that under the old system it would have been reconciled when the mortgage was redeemed (as indeed it will now). It is just that moving the date during the current month creates further interest for that one month or part thereof which they are spreading over the whole term. It's an odd way to do it but there is no additional cost

This issue doesn't affect me , but having had various 'discussions' with various mortgage companies over the years, might I suggest that you all write a formal "Deadlock" letter to BM giving them 14 days to respond. That should concentrate their minds.
If they fail to respond, which they are legally bound to do, take them to court for breach of contract.
Doubtless the more legal eagle members will have a view, and far greater knowledge, but I have had considerable success with these tactics. At the least, it makes them realise that it's not just noise they can ignore, but potentially the source of considerable legal pressure that may well cost them dear.

Please don't waste your time and resources - as Mr Buddah said it is just the interest between the old and new date which you would have paid anyway. It is badly explained but you are not paying any more just at a different time as interest is calculated daily. So interest up to 15th (say) is now up to 30th (say). So they have to take the interest for the intervening period. Rather than hitting you all at once they have spread it over the term of the mortgage. There really is nothing to complain about.

I have 2 BM mortgages and despite paying by Direct Debit the balance of my account has increased over the last year. They are therefore increasing my payments. I phoned about one and was told I would get a letter to explain it in 10 days, still waiting.

I have heard on the grapevine something very big May hit BTL Lenders from in or around 2008-2009 financial collapse ,it is to do with arrears added to the mortgage balance but then Lenders continued with repossession.
The Con was simple and it was achieved by using the word ( Revised) on interest only mortgages , a particular judge I dealt with did not understand ( Revised) in normal everyday terms most people understand Capitalisation of arrears but you can only use this on repayment mortgages NOT on interest ONLY because your not paying off the Capital you are only servicing the interest.
In or around 2008-2009 they were 95,000 repossessions.
This is a fraud so it is not time barred very many Lenders repossessed when mortgages were not the permitted two months in arrears.
Lord Justice Munby made a statement prior to my case in that once an Arrear is added it know longer exists , he was swiftly appointed to the family courts.
Mr Andrew Bailey refused to listen to me ?
It does not matter if a mortgage is regulated or not fraud especially to the Courts is a serious Crime.

I am so pleased that I came across this thread! Last year, I decided to plough my life savings into paying off my BTL fixed-rate repayment mortgage with Birmingham Midshires.

To avoid the early repayment charge, rather than pay it off last year, BM changed my term to coincide with the date at which a full redemption could be made without a charge being made; that happens to be 31st December 2021 so, including this month, I had just three payments to make. After the final December payment, it was just the final mortgage fee to pay (about £250). To be clear, I always make meticulous notes of all telephone conversations like the one I had last September, and I received a confirmatory letter confirming the fixed repayments; there were NO hidden costs other than the final £250 fee.

When BM changed my term/repayments in September last year, a very large monthly repayment resulted (thousands), and I had been paying that precise amount by direct debit right up to and including the September payment. However, yesterday a letter arrived [late!] in the post (a similar one to the one you all received no doubt) where BM said, having implemented their new system, my monthly repayments would increase by £703. I checked my bank statement and, sure enough, on 22nd October they had taken the new amount.

By the time I have paid my final payment in December, I will have paid £2,100 more than I should have done! The only thing in that massive sum that is new to my monthly repayments is the £250 final mortgage fee, but a third of £250 is certainly not £2,100!

I called BM, which is now handled by a helpdesk in the Philippines (which was not the case last September). I was told that they had no access to the 'old system' so they could only answer questions on my account starting from September this year. I asked where the extra £703 per month had come from; they could not answer that question and they would have to contact their 'back office' and write back to me in 7-10 days to explain.

In desperation, I called the 'difficulty with paying my mortgage' number, which was answered by a helpdesk in the Midlands. The person was very kind (as it was not her job to look into account issues) and made enquiries internally through her manager; at the same time she raised a complaint on my behalf and said that she would call me back. Sure enough, she rang me back an hour or so later, but she had been unable to find anything out; I would have to wait for an explanatory letter.

What a terrible situation! What do I do?

Reply to the comment left by gauge_boson at 28/10/2021 - 08:55
Try the end of term team on 0800 056 2980 - I have found them very helpful on extending my term and they answered other queries as well. The call handler was definitely not in the Philippines and very knowledgeable (although they couldn't tell me why one term could be extended and the other couldn't).

Sounds like they may have added the ERC and you have repaid capital early after all which you were intending to pay after the fix ended. Let us know how you get on as I am intrigued.

Reply to the comment left by gauge_boson at 28/10/2021 - 08:55I just re-read your post and if it's to do with the new system then the £2100 must be the interest for the period between the old and new payment dates. Depending when you redeem it, it won't actually be any more money as it is calculated daily. So if it is two weeks your normal payment is £4000ish a month? Does that make sense? Seems quite high. I think you should check that it isn't an ERC especially as you say it is a repayment mortgage. I can't easily see how you can have changed the term as you describe without making early repayments. You might have been better just waiting and saving the money to repay the capital after the fixed rate term ended.