Remortgaged mid-month - been stung for double payment

amoeba

In January I remortgaged from Cheltenham & Gloucester to Nationwide.

Exchanged on the 15th January;
C&G charged me £1100 on January 1st, for January.
Nationwide just charged me £1045 for February, and £500 for half of January.

I was expecting a refund from C&G, but I phoned them and they told me 'we owe you nothing, our system is correct'.

Now do C&G just refuse to give part-month refunds, and so I am stuffed? And if so, why did my solicitor/conveyancer agree to exchange mid-month, are they at fault?

MarkyMarkD

It almost definitely didn't cost you anything.

Your final settlement balance from C&G will have been around £500 less than it would have been if you'd remortgaged at the end of the previous month, as you'd effectively overpaid the interest due in January by £500.

There are very few lenders who actually charge interest for the full month of redemption and I do not believe that C&G are one of them.

If you DID have a loan with such a lender, it would have been bad advice to recommend switching mid-month; however, your solicitor/conveyancer wouldn't necessarily have been at fault as it's as much your responsibility to look at the redemption statement and understand it as theirs, IMHO.

amoeba

Yes thats how I understood it. However C&G have definitely taken the 'usual' amount out via DD of £1101 for January.

res1996

what you will find is that the nationwide will have cleared only the amount owed.So your mortgage will be smaller than original quote.I am currently moving from C+G and just requested another closing statement having made a payment on the 1st.The closing balance is now less.Phone Nationwide and ask how much you have borrowed you will find it will be less, apparently when remortgaging figures can adjust by £1500.

danjberry

amoeba wrote:

Yes thats how I understood it. However C&G have definitely taken the 'usual' amount out via DD of £1101 for January.

the amount they took at the beginning of the month would of been the full amount but if you had a redemption statement at the end of december and then one after the paymentin january you would see the fact you remortgaged half way through january was taken into account

MarkyMarkD

amoeba wrote:

Yes thats how I understood it. However C&G have definitely taken the 'usual' amount out via DD of £1101 for January.

Of course they have.

You always pay the same monthly amount irrespective of whether you redeem part-way through the month or not.

But you don't get CHARGED the same amount of interest for a part-month, so your capital balance will have been lower than it was at the end of the month.

You haven't lost out - stop worrying about it.

amoeba

Okay thanks guys, the C&G person on the phone was incredibly unhelpful.

Also - I have received to final statement from them, they said they sent it to the solicitors.