The Mortgage Works Interest payable prior to completion

Weloveshoes1965

Hi
can anyone tell me if it is legal for TMW to charge me for interest on my Buy To Let Mortgage BEFORE I even signed the contract and took out the mortgage?
I comlpeted yesterday and receieved a letter today stating my 1st payment would be double the usual payment as mortgage interets has accrued form the date the offer was accepted, not from the date I actually took out the mortgage.
Surely I can't be liable fro interest on money I haven't yet borrowed, and what about if I didn't complete due a problem with the property or insurance? would I still be liable to pay the interest from Feb until the day I decided not to take out the loan?
cheers Claire

TrickyDicky101

I think that sounds fishy - certainly my residential mortgage only charged interest from the date the money was advanced (ie Completion date for me).

kingstreet

You need to ask your solicitor when they received the funds from TMW. That's normally the day you start to accrue interest. That may also be the completion day, but can be earlier.

The letter you have received definitely says interest is payable from when you accepted the offer not from completion?

It is possible that if you complete on say, 5th of the month, the first payment will be on 1st of the following month and will be 5th to 1st for the last month, PLUS 1st to following 1st to reflect that payments are actually made in advance.

dunstonh

Having a higher first payment is normal. Usually its the date from when the funds were advanced to the next mortgage payment date PLUS the month ahead. You could get up to nearly 2 months interest on your first payment.

However, it is from the point the money is advanced as mentioned in posts above.