Mortgage Redemption Interest (On Day After Early Redemption Penalty Period Ended)

I paid my mortgage off today because I can't afford it at the new interest rates, so I was forced to throw all my savings at it.
This was the day after the early redemption penalty period ended i.e. at the very earliest opportunity I am able to do so!
However, I've just learned that the Mortgage lender - TMW - has charged me a day's interest (at their stupidly high SVR rate) for this day, even though I made the payment first thing?

Can someone tell me if, and if so, how, is this even allowed?

You're willing to pay it off exactly on time, indeed willing to pay it earlier, but can't because you're subject to early repayment charges but even if you pay it off at the soonest opportunity, they still penalise you with an additional interest charge.
This feels like entrapment. Surely legally, and moreover, morally you should be given an opportunity, a small window, to pay it immediately with no further interest. With this protocol, there no way that you can avoid an additional charge, either way.
How are these things even allowed?

Comments

  • chanz4
    chanz4 Posts: 11,057 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Xmas Saver!
    should os asked for a settlement figure?
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • ACG
    ACG Posts: 24,413 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    The redemption figure would have still have the same figure. 

    I sort of see your point. But you did have their money in your possession today. They would have had to pay their costs today for that money, so why should you not have to? Presumably you were paid interest on the money in your account today? 
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • How much actual interest have they charged you for this day?  
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 349.9K Banking & Borrowing
  • 252.7K Reduce Debt & Boost Income
  • 453K Spending & Discounts
  • 242.9K Work, Benefits & Business
  • 619.7K Mortgages, Homes & Bills
  • 176.4K Life & Family
  • 255.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.