Mortgage direct debit change

[BusyAtMaths]

Our mortgage payment is scheduled for 17th of the month. I asked bank to change this to 1st of the month.

They skipped this month's December 17th payment and the new schedule will commence from 1st January.

However, the payment has increased by €5 euro per month.
Is that to be expected?

I'm reluctant to hand over €300 (60 months, 5 year term).

 

[Leo]

I presume they readjusted the monthly amount to account for the missed December payment?

 

[BusyAtMaths]

Perhaps, but I didn't ask or want them to skip December's payment

 

[Paul F]

@BusyAtMaths Are you now paying every fortnight or are you still paying once a month?

 

[BusyAtMaths]

Monthly, no change in that respect

 

[ClubMan]

Why don't you ask them to explain the €5?

 

[BusyAtMaths]

I did, they gave me some ramble about change in term.

 

[BusyAtMaths]

But their representative wasn't very knowledgeable or able to explain it.

 

[cloughy]

Assume they can't extend the term, so your last payment will be the 1st of the month it was due to end, and not the 17th, if you also asked them to extend the term from 17th of the month you were meant to finish to the 1st of the following month, then repayments would be similar.
How much are you currently paying on each 17th?
I would assume your repayments on total will be the same either way, you either will be finished earlier or your last payment will be less that it would have been,

 

[BusyAtMaths]

I got more clarification.

So the December payment was not taken because of the timing that the amendment form was processed.

Importantly, there will be no December payment due and there will be no double payment to make up for it in January (I had presumed otherwise). Hence the extra €5 to the new repayment schedule in January (December's payment split over the term).

Thanks for the replies