- posted 4 years ago
Hi. I've just taken out an interest only mortgage, with the loan drawn on t he 20th of this month. I just received a letter from the lender stating tha t I will be charged approx 150 quid on 1st May as an initial payment (fine) and then approx 350 quid on 4th May as commencement of my usual monthly pa yment. I had it in my head that mortgage interest is usually paid in arrears, not in advance. Consequently, I was expecting a charge, at the start of May, of something less than the usual monthly payment, for the ten days of April t hat the loan has existed. I expected thereafter, commencing at the start of June, the usual monthly fee would apply. Is there something atypical happening that I should chase up with the bank? Cheers. Terry.