Remortgage to new lender - interest

RandomUser923759

I wonder if the situation I have found myself in is correct.

My 2 year fixed ended Sat 31/08/2014. 

I could not complete with my new lender on Friday 30/08/2024 or I’d have had to pay early repayment fee.

I could not complete on 01/09/2024 as this is a Sunday.

All was perfectly in line and had been for some time to complete on 02/09/2024.

Is it right that I must pay interest at standard variable rate for the 1st and 2nd?

I had calculated that I was due about decent enough refund due to overpayment of the redemption but I only received 0.12.

Is it right that the customer is essentially stung either side with charges - even though all was in place to complete at the first possible moment and only restriction being outside of my control?

housebuyer143

Yes, you pay interest at the SVR on the days until you pay off the loan. It doesn't matter that you were set up to pay it off, you didn't pay it off until 2 days after your fix ended.
2 days at SVR though wouldn't be significant. Are you sure you didn't get another month of interest paid to them as it was a new month? You might be due a refund from them - I would call and ask.

user1977

You chose a product which ended on a Saturday...you could have (I presume) looked more carefully at the end date if this was going to be an issue for you. But most people would regard the difference in 2 days' interest to be trivial.

RandomUser923759

It’s a two year fixed, I don’t choose the end date. Two days interest when you’re already moving into a much higher interest rate might seem trivial to you but it’s not to me - hence the question. Be kind and do better. There is zero need to be condescending. Everyone needs to learn - this is my first mortgage deal ending. Even if it was possible to choose an end date - amongst the logistics of buying my first property - the end date of the deal was not in my mind. My post is also questioning the absurdity that there is zero option to resolve this as both options face a cost.

Hoenir

RandomUser923759 said:

It’s a two year fixed, I don’t choose the end date. 

The date was visible when you chose the product. At least every two days in 7 are non working days for banks. Sometimes that's the way the cookie crumbles. If it's a concern for future. Check before signing off the offer. 

RandomUser923759

Hence why I am checking so I know for the future. So can we just answer forum posts like normal people?!

housebuyer143

RandomUser923759 said:

Hence why I am checking so I know for the future. So can we just answer forum posts like normal people?!

Your question has been answered? Yes, you have to pay interest on days in which you are borrowing money. You didn't pay it back on the 31st (doesn't matter why), so interest is due.

RandomUser923759

Yes it’s being answered but doesn’t negate the condescendence that is unnecessary. 

Bluebell1000

We have a 5 year mortgage coming up for renewal on 31st December, and if we switch providers I'm expecting at least 3 days on SVR given the time of year. As with yours, that date was set by the mortgage company, not us, as it was actually a little over 5 years. It is annoying that they couldn't have picked dates that are practical for their customers to work with.

RandomUser923759

Bluebell1000 said:

We have a 5 year mortgage coming up for renewal on 31st December, and if we switch providers I'm expecting at least 3 days on SVR given the time of year. As with yours, that date was set by the mortgage company, not us, as it was actually a little over 5 years. It is annoying that they couldn't have picked dates that are practical for their customers to work with.

Right - surely they should just expire on a weekday.

Hoenir

Bluebell1000 said:

We have a 5 year mortgage coming up for renewal on 31st December, and if we switch providers I'm expecting at least 3 days on SVR given the time of year. As with yours, that date was set by the mortgage company, not us, as it was actually a little over 5 years. It is annoying that they couldn't have picked dates that are practical for their customers to work with.

Have you considered that the Mortgage Lender may have to repay the entire tranche of funding themselves on a given day ?