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Smi, payment


saffron95
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Hi, Hope some one can shed some light for me. I'm on E.S.A I get help with mortgage which is 132 pound's a month.

 

I've been informed that in April it will go to 18.90 a month. When i asked why they said the bank inform's them every year and that's what my new payment's will be. I thought the interest rate has stayed the same .so there would be no change in the amount they will pay .

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I'm a little puzzled by this, as SMI should be paid at a standard rate regardless of the actual interest rate on your mortgage. That's currently 3.63%. However, perhaps this standard rate is changing in April?

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