Mortgage ends 3 Feb 2025 but fixed rate ends Jan 31 2025

worid

I just rang my mortgage company as they sent me an email to renew my mortgage as the 5 year term ends 31 Jan 2025.  I actually pay off my mortgage completely on 3 Feb 2025 I will be nearly 76 years old.
I rang them and apparently I will go on a variable rate for the month of February and then they will refund me the difference later.  This doesn't seem right to me.  Surely they can work out just 3 days of mortgage and just charge me that instead of taking a whole month of whatever rate it will be then refund me later.
It is only a small mortgage of £274 a month but I am actually on pension credit now so I don't see why they should take my money with interest for the whole month when I could do with it.  I have always paid my mortgage on time.  It was for ten years.  Before that my mortgage was paid off in 1993 when my husband died and due to family circumstances I ended up not having enough to by a property without a mortgage at the age of 65.  
Has anyone come across this before and how did you deal with it.

born_again

Any way that you can pay it off in full before the end of the term?

worid

I did ask. it will cost me £1,500 with an early payment penalty of £200.  I actually don't have it - I know it's pathetic it is such a small amount but this last year I have spent most of my money on the house dealing with leaks and getting the roof fixed. I will try and work something out, but thought of writing to them and asking them to sort it out so I don't pay the whole of February.

Hoenir

There's likely to be mortgage redemption charge that will be included in your final payment in addition to the final capital balance owing. Worth checking what this is. The interest charged for February is likely to be minimal.  

ACG

You could cancel the DD and make manual payments. 

Banks have millions of customers. They have processes geared up to cater for the majority rather than the individual. 

worid

I did think about that ACG but decided against it.  However I will write to them as I mentioned before and mention this as an alternative.  Perhaps it is best to cancel my DD on 31 Jan and then ask them to bill me for the amount for the 3 days plus if there is a mortgage redemption charge but this was not mentioned in my phone conversation.

Thanks to all for your suggestions.

Hoenir

The direct debt to the 31st January covers interest to that date plus the capital repayment due. 

Cancel the direct debit once it's been paid. 

Then ring up on the  3rd Feb and settle the balance. The 1st and 2nd Feb is the weekend so non working days. . 

worid

Yes Hoenir that sounds good and this is probably what I will do as long as they don't get funny about it.

The other thing I discovered is that they never sent me my February statement this year which covers the payment amounts to 2025.  I went through all my docs and they were all there except for the last one.  I should have noticed at the time but what with everything that has been going on this year, I only noticed it was missing the other day before I rang them. 

They will be sending me this statement although they did say they had sent it out as usual.  This could very well be the case as the post round here is dreadful.  She said it would take 5 days to arrive.

I am afraid I am very old fashioned as I also enquired what happened to the deeds.  They apparently relinquish their claim so they then should be mine.  Last time I had a paper deed sent to me that is in 1993.  Apparently they are just kept electronically at Land Registry now - who knew!