Finally switched to tracker but additional months have been added

Paulk

Registered User
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After been stung with a fixed rate of 5.49% for the past 3 years, I finally got a letter from the bank confirming that I will switch to a tracker next month.

However, I noticed that two additional months have been added to the lifetime of the mortgage.

I know that in the greater scheme of things two months isn't a significant amount given that I'll be on a tracker. Nevertheless, I don't like those bankers receiving an extra cent which shouldn't be theirs.

Has anyone else encountered this i.e. extra time been added on?

I might call the bank but obviously I don't want to do a single thing that might jeopardize my tracker.
 
You are on a tracker because you have a legal right to be on a tracker. You can't jeopardise this by asking for an explanation.

Were you on interest only for a while?
Did you miss some payments?

Coming off a fixed rate to a tracker rate should not on its own affect the term of the mortgage.
 
Thanks Brendan,

Yes I was on interest only for the past 3 years. However, I did not miss a single repayment. I will call the bank later.
 
Hi Paul

If you were on interst-only from the start, it shouldn't matter.

But if you changed to interest-only since the start, then the loan term would be longer.

Brendan
 
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