Hidden Brokern Interest Charges on Remortgage

Jezza.B

I've just recently completed this month a fixed remortgage with Brittannia. They have written to tell me that the new rate of £ 698 / month, will start on the 1st of November, however, they will be taking over double this on the 1 st, due to 'brokern interest' of a part month, i.e. 1428 !!!.
My previous fixed mortgage with Bristol & West ran out on the 1 st of October, and I completed the new mortgage on the 2nd of October. How can they charge me this for one days interest ?
I knew nothing about this cost - so paying over £1000 in fees etc, I now have to find an additional £700 by the 1st November ?
Has anyone else had experience of this, and if so can I resonably object ? Many thanks !

MortgagesInc

I would guess that you pay interest in advance, so on the 1st November you're paying for 30 days of October, plus the whole of November

Debt_Free_Chick

Jezza.B wrote: »

I knew nothing about this cost - so paying over £1000 in fees etc, I now have to find an additional £700 by the 1st November ?

But presumably, you still have the payment you didn't have to make to B&W in October?

Dan_Collins_2

You ALWAYS pay a mortgage in advance, so if you do not pay octobers interest yoy will fall in to arrears. This is an issue that really winds me up. I always make it clear to my client when we discuss how the process works. They always forget so I remind them once an offer is issued, they forget because they are thinking about not paying the current mortgage for that month and that they could use it for something more interesting! This is human nature, well it seems to be!

What bugs me is Lenders do not seem to flag this up, the KFI assumes a completion date and does show a higher first payment but that is all they do. Lenders need to start acting like we have to!