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Remortgage - interest in advance or arrears
planetf1
Posts: 365 Forumite
Hi,
I completed a remortgage on 7th Nov with the co-op.
My monthly payment date is 1st of the month.
1st payment is approx 1.75* subsequent payments
Interest is calculated daily
This was a little unexpected -- I was expecting to pay 0.75 on 1 Dec for the period 7th Nov - 31 Nov.
I guess it means the borrowed amount is the MAX I ever owe rather than going above that due to accured interest. Something I hadn't appreciated, but I guess if they charge interest daily it makes sense. Learnt something for next time.
(As it happens since the initial loan request was based on slightly outdated statement I've had a refund from settlement which just about covers the extra charge anyway)
I completed a remortgage on 7th Nov with the co-op.
My monthly payment date is 1st of the month.
1st payment is approx 1.75* subsequent payments
Interest is calculated daily
This was a little unexpected -- I was expecting to pay 0.75 on 1 Dec for the period 7th Nov - 31 Nov.
I guess it means the borrowed amount is the MAX I ever owe rather than going above that due to accured interest. Something I hadn't appreciated, but I guess if they charge interest daily it makes sense. Learnt something for next time.
(As it happens since the initial loan request was based on slightly outdated statement I've had a refund from settlement which just about covers the extra charge anyway)
What goes around - comes around
give lots and you will always recieve lots
give lots and you will always recieve lots
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Comments
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what exactly are you asking information on0
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Whether this is normal & whether I've correctly understood the situation.What goes around - comes around
give lots and you will always recieve lots0 -
The first payment is like this for most mortgages AFAIK. I completed in late August and my 1st payment was in October. Therefore, in both our cases interest accumulates daily and is paid in arrears.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0
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do you pay an exit fee when you remorgage with the same lender I'm with Bradford & Bingley and have remortgaged with them 3 times now.
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