Interest charges

KAJ_2

Hope someone will be able to help! We recently remortaged with TMB and they were supposed to transfer the money into our account. Because their systems were down they sent us a cheque. By the time we could draw on the cheque 8 days had lapsed. They want interest from the day they issued the cheque but I am refusing to pay as we didn't actually have the money to draw on. I have written but they just keep sending letters charging us £30 each time. I don't think we should pay these charges. Can anyone advise?

JoeK_3

Read your offer details and fast.

JoeK

MarkyMarkD

What matters is the date you stopped paying interest on your original mortgage, surely - the extra cash you took is surely far less significant?

It's pretty poor for them to have paid by cheque.

Normally lenders charge a TT fee - presumably they have refunded/not charged this?

KAJ_2

Thanks,still not clear what I should do though. If we didn't actually have the money should we pay the outstanding interest for the new mortgage if we didn't actually have the cash?

thanks for advice.

JoeK_3

Interest is charged from the date that the solicitor calls the money down from the lender.

It is rather unfortunate that you had to receive the money in a cheque instead of the normal telegraphic transfer.

Don't ignore their letters, give them a ring and explain your disappointments and ask them to reconsider your position.

JoeK

KAJ_2

Thanks for the advice, I will call and see what they will do. Just a note that we were still with the same company just drew down some money so we were still paying the interest on the original loan by direct debit this amount was just the additional interest and I did pay them some of the money just took off the 8 days interest.

Thanks.

MarkyMarkD

Ah, well, KAJ - next time you want to describe a further advance, maybe you won't call it a remortgage, and we'll know what you are talking about.

I would say that there's absolutely nothing to suggest that a lender HAS to make a further advance by any particular means; charging interest from the day they issue the cheque is quite reasonable.

Are you not making a fuss about a very small amount of money indeed?

Sometimes you just need to be pragmatic, not argue about everything.

Just out of interest, 8 days' interest on £10,000 @ 6% is about £13. Maybe that will put it into perspective?