Mortgage - charged extra interest monthly

[Tootytata]

My mortgage is usually paid on the 1st of each month. I notice that the money is taken out of the current account on the 1st but my mortgage amount doesn't reduce until the 3rd of each month. Current account and mortgage are with the same bank. Is this normal?

In the meantime, is my bank charging me mortgage interest for those 2 days (my interest is calculated daily)?

Is this like a new PPI scandal?!

Has anyone else noticed this with their mortgage payments?

Most payments take a couple of days to officially clear.

I think its crap. Bit its perfectly legal.

But we live in an age where same day payments are the norm so I don't understand why it takes so long. If you add up interest for 2 days every month, 24 days every year...how much are the banks essentially overcharging in interest?!

If it goes out the same day each month, would you actually be charged more interest eg would you not pay the same interest for a cycle that is 1 June - 1 July as a cycle which is 3 June - 3 July? (Not being pedantic - genuinely unsure!)
I understand if you made an overpayment you'd want the amount you pay interest on reduced ASAP, but does the same premise apply to your regular monthly payments?

I thought this too / and I’ve also noticed that if it’s a Sunday or bank holiday the payment falls on it takes longer. When interest is charged daily I do wonder if we get screwed. Also, if month is 31 days then you pay on day 32 (1st) but it doesn’t clear until 3rd then you’re paying more as my interest is different each month.

I do wonder if it’s worth raising with MSE or similar

You will still pay 365 days interest.

Given that a mortgage payment knocks a small amount of the capital each month. The interest would be 2 days on the difference. I would bet it's written into the mortgage agreement about processing times.

You should look into it. As far as I am a bank is allowed to take a few days to process your payment. But do look into it.

Write to Martin Lewis. I would have thought he will have looked into and may have a good response.