Remortgage question

shopbot

I recently remortgaged however I was wondering if what happened with me was normal practice as it has dented my cash flow a bit! I made my normal mortgage payment to company A at the start of the month. The remortgage took effect in the middle of the month. At the start of the next month I had to make 1.5 month payment to company B to account for the 'half month'. I'm not sure if this is correct - surely the remortgage should have been structured so that I am only paying my 'normal' payments?

I hope this makes sense!

AndrewSmith

it's quite normal to pay 1.5 months initial payment if you complete in the middle of the month, as lenders account for payments on a calender month basis.

The payment made to company A will have been accounted for at redemption when the mortgage was replaced.

Andy

marybishop

Yes that happened to me too (sob)!

payless

always make sure that the last payment made to the old lender was allocated to the account / included in the redemption figure ( if not its normally refunded autmatically) - solicitors often request the redemption figure a bit before completion , and it would read

Amount outstanding today £XXXX plus £x interest per day
now if you had made a payment in between , the solicitor would have sent to much ..

Lawbag_2

this is normal practise, damn annoying too especially if its all done by direct debit because it happens regardless