Redeeming in full, being charged more than balance?

[meister74]

Hi All,

I phoned my mortgage lender last Friday and said I wanted to redeem my mortgage, and my balance that day was £48,896. They said they would send me the paperwork including a membership retention form (this means I will pay off all bar £100 which will be interest free and retain my membership of the Society).

However, paperwork arrived today saying to redeem, I must pay £48,966 (so £70 more, presumably interest to end of June??) but bearing in mind I will still owe £100, it effectively means I am paying/owe £170 more than the actual balance. Is this right?? Surely I should be able to pay the actual balance owed as of today, minus £100 which I am leaving there?

Please advise.

Thanks all.

[old_andrew2007]

bump

[manchester1]

Hi Meister, I know it sounds silly but i would write to lender and ask for breakdown in writing ,pointing out your understanding of what should happen ?

Manchester1

[tbern123]

Is your mortgage interest calculated daily and what is the date of intended redemption ?

At an interest rate of 7% £70 works out about 7 days interest. Taking into account you called them last Friday (6th June) and nearly a week later (11th June)the paperwork arrived, I would have thought that the redemption figure is most likely corrst

Daily interest at 7% on a balance of £8,896 = £9.38

[MortgageTalk]

I agree with previous post. The additional interest charge is due to the time difference between your initial redemption figure enquiry and your ACTUAL redemption date. You cannot reasonably expect a lender to stop charging interest just because you requested your redemption balance on a particular day.