Re-Mortgage charging an extra months interest

ForestBluebells

I’m currently remortgaging and the settlement figure the current lender has given me includes an arrangement fee which I can’t remember if I paid at the start or not to be honest but also a months interest for March( my current deal ends on 2nd March and they said they will take my March payment but refund this back to me on completion but they are charging me the interest for March on the redemption figure.

is this normal as I didn’t have this when remortgaged previously?

Thrugelmir

There'll be a mortgage redemption fee. Plus you'll owe interest on the daily balance owing from the 31st January to the date of redemption. This will be February's interest due plus two days of March. 

ForestBluebells

Even though I already paid my February payment?

Thrugelmir

Interest is normally calculated daily and charged monthly in arrears. Your February payment would have been made at the begiining of the month. This covered January's interest charge with the remainder reducing the capital balance owed. 

ForestBluebells

Ok that makes sense thank you 🙏 it’s just an extra £415 I wasn’t expecting to have to pay but I have the cash so I’ll send it to them now. Thank you 😊