Mortgage redemption date on a weekend

Q12

Hi. I will be redeeming a buy to let at the end of this month. The statement lists Saturday as the first date I can pay it off without an early redemption penalty.

When I phoned the mortgage company to check that a payment on a Saturday was OK, the telephonist advised that, as they were closed then, the payment would not be processed until Monday therefore incurring an extra 2 days interest !

Is that correct ? If it is I will leave the money in my savings account for an extra couple of days but it will still cost me as the mortgage interest rate is 3 times my savings rate.

Thanks in advance

housebuyer143

Q12 said:

Hi. I will be redeeming a buy to let at the end of this month. The statement lists Saturday as the first date I can pay it off without an early redemption penalty.

When I phoned the mortgage company to check that a payment on a Saturday was OK, the telephonist advised that, as they were closed then, the payment would not be processed until Monday therefore incurring an extra 2 days interest !

Is that correct ? If it is I will leave the money in my savings account for an extra couple of days but it will still cost me as the mortgage interest rate is 3 times my savings rate.

Thanks in advance

Yes, that's right. It's like when you buy a house and if you complete on a Monday they draw the money on the Friday and you pay interest for the extra 3 days.