I was hoping someone could help me with the following.
We agreed a mtg last year at a special new business ftb 1 year fixed rate. We drewdown on our mtg in Feb only for the vendors to delay the closure an hour before the agreed closing date & time. We immediately paid the money back in full to the bank. We eventually closed on the property 3 months later in May. The bank agreed to honour the original interest rate even though in the months between first drawdown and final drawdown the rates went up.
We just received our annual mtg account statement. The starting date of which has been classed as Feb 2006. There is an debit for the mtg amount and a subsequent credit a few days later for the same amount. There are no other transactions on the statement until May when it shows a debit of the mtg amount. The following months are the usual mtg repayments and interest transactions.
We were told by the branch at the time that the rate agreed would be valid from the drawdown date in May for the year. However, we have now received notice that the start date of the interest rate was Feb when we first drewdown the mtg even though we immediately paid it back.
I was wondering what the normal procedure with this is? As we didn't make any payments between Feb and May the interest rate wasn't in effect. The mtg dept at the bank has stated that the rate starts on the drawdown date, as does the small print but there is no mention of what happens if the initial drawdown is paid back in full.
Obviously if interest rates had gone down in the interim I wouldn't be concerned but as they have gone up it probably would have been better for us to go with the slightly increased rate in May for the full year than the lower rate for 9 months and the current interest rate for 3 months.
Obviously the end date of the mtg will be May as we only started paying back in May so there is some disparity between that and the interest rate start date.
We agreed a mtg last year at a special new business ftb 1 year fixed rate. We drewdown on our mtg in Feb only for the vendors to delay the closure an hour before the agreed closing date & time. We immediately paid the money back in full to the bank. We eventually closed on the property 3 months later in May. The bank agreed to honour the original interest rate even though in the months between first drawdown and final drawdown the rates went up.
We just received our annual mtg account statement. The starting date of which has been classed as Feb 2006. There is an debit for the mtg amount and a subsequent credit a few days later for the same amount. There are no other transactions on the statement until May when it shows a debit of the mtg amount. The following months are the usual mtg repayments and interest transactions.
We were told by the branch at the time that the rate agreed would be valid from the drawdown date in May for the year. However, we have now received notice that the start date of the interest rate was Feb when we first drewdown the mtg even though we immediately paid it back.
I was wondering what the normal procedure with this is? As we didn't make any payments between Feb and May the interest rate wasn't in effect. The mtg dept at the bank has stated that the rate starts on the drawdown date, as does the small print but there is no mention of what happens if the initial drawdown is paid back in full.
Obviously if interest rates had gone down in the interim I wouldn't be concerned but as they have gone up it probably would have been better for us to go with the slightly increased rate in May for the full year than the lower rate for 9 months and the current interest rate for 3 months.
Obviously the end date of the mtg will be May as we only started paying back in May so there is some disparity between that and the interest rate start date.