Silly Question

leighlaz

Might be a silly question but something which seems straight forward but dont understand.

I have just remortgaged with a different bank, my usual payment date was the 5th of the month. I have completed the mortgage today. I have just looked at what my first payment should be and when it should be paid and dont understand it.

I should be paying £735 a month but the first payment will come out on the 5/11/13 and it will be £860. This feels like I am having a mortgage free month (for October), surely this isnt right?

Anyone else had this experiance???

Thanks

kingstreet

If your lender collects in arrears and your previous lender collected in advance, that could well be the outcome. Your redemption figure to your previous lender would also have accounted for any part-month interest, as does your first payment to your new lender, as it is higher by the number of days interest from completion, to the month end.