New mortgage deal midyear but charged on balance at start of year

bankgotmygoat

If anyone could advise, it would be appreciated.
I have had a repayment mortgage with Natwest for many years. At the end of each fixed rate deal, I have taken up another. I have looked back and built up the energy to go into the interest charges and payments made to understand/check them for errors with the intent of claiming refunds for any errors I spot.
I've noticed that on three occasions the new deal starts on 1st December so I would have expected the new rate to apply to the balance as at 1st September going forward. But they have applied it to the balance as at 1st January. So they've charged me interest on money that was already paid off.
Is this an error or am I missing the point. If it's an error it would mean they had over charged me about £500 on each of the instances.
Thanks for your help in anticipation. Best Regards.

ACG

Is your interest charrged annually?

bankgotmygoat

Hi, If this answers the question... they multiply the balance at 1st Jan by the fixed rate and then divide by 365 and charge me that per day throughout the year. Thanks.

ACG

Have a look on your Mortgage offer, section 4 (I think) will say if the interest is charged daily/monthly or annually.

It sounds like it is, in which case it sounds like it has been charged correctly.

Most lenders charge daily. There are some Woolwich customers who do get charged annually, I think it was/is down to the product selected. I can not think of any other lenders who charge annually but I am sure there are some.

bankgotmygoat

ps. For the middle (full) calendar years of a fixed rate deal (say yrs 2,3 & 4 of a 5 year deal) and for the beginning of the final year I kind of understand that because they are all under the period of the deal and under the same rate of the deal. But when a new deal is agreed I would have expected the balance to which that deal relates would be measured afresh from that point. Thanks

bankgotmygoat

Our last two messages crossed in the post... I'll just do as you suggest and come back. Thanks

bankgotmygoat

Back in the original accompanying glossy in 1999 it says at para 5d:
"We will charge you interest for the whole year on the amount you owe (which is the amount in the mortgage account) at the end of the last accounting year. But, if you make a lump sum payment under 9b, we will charge you interest on the new balance on the mortgage account from the date we use the payment to reduce your account".
I can't find any other reference in any documents since then.
Thanks..

ACG

It would be on the Mortgage offer and the KFI.
You could just call up and ask if interest is charged daily/monthly/annually?

If in doubt ask them to send you a breakdown of how the interest has been calculated.