Remortgaging and overpayment to old bank

jiggy2

Hi,

If an overpayment is made to the old bank when remortgaging (as they haven't taken the final payment into account on the redemption statement), how long does it take for the bank to refund the overpayment.

E.g. remortgage to go through on 2 March and therefore new bank requests redemption statement, but that stmt doesn't show the payment due to go out on 27 Feb...therefore end up overpaying old bank by that one month.

in particular anyone had experience with alliance & leicester?

Cheers

Jig

SHOULDI

Hi Jiggy,

This happened to me only last month. HSBC didn't take into account the overpayment standing order and the final months mortgage payment when calculating the final payment to the new mortgage lender.

I spoke to them on the day of the mortgage 'change of hands date' when I worked out what had happened and it took approximately 7 working days before they refunded the money into the bank account my payment is normally taken out of it. But I would definately suggest chasing them as early as possible.

Good luck.

jiggy2

thanks.

i have asked FD to ask for a new redemption stmt 2 days after they take the final pymt so hoping it shows on A&L system by then