Interest due when mortgage repaid

ByeByeMortgage

We are just going through the final throws of paying off our interest-only mortgage but wondered if we had any claim to a small reimbursement from the building society to whom we have paid so much over the past 25 years? We started the year with a balance of around £47000 and repaid just over £23000 in May when our (woefully below original estimate) endowment matured. However our final statement balance appears to be based upon us paying gross interest of £187 (the amount quoted in our end of 2012/ 2013 Payment Details received at the start of the year for the full 12 months of this year, despite the fact that our outstanding balance reduced by approx. half for approx. half the year. Any thoughts / similar experiences much appreciated.

TrickyDicky101

You need to establish on what basis interest is charged on your mortgage. Modern practice is for daily interest, but many mortgages sold a couple of decades ago were based on annual interest calculated at the start of the year (on the balance outstanding at that date). Not a fair practice if you ask me, but that doesn't necessarily mean the lender can't charge it.