When does my mortgage finish??

cazziej

Hi

Just wondering aloud really, and will contact Halifax on Monday, but somebody might just have an idea.

We moved in to our first home in April 1984 and took out a 25 year endowment policy. 5 years later we sold this house and bought our current one, taking out a 20 year endowment and moving in on 06.10.1989. The first endowment paid out in March this year and we paid the first mortgage off with that, with a few thousand leftover.

All my endowment documents state that the other policy matures on 01.11.2009. Last time I spoke to the Halifax, I am sure I vaguely recall them saying my mortgage term ended in September 2009.

I am slightly puzzled with these dates now. I had a letter from the Pru yesterday, confirming that the endowment matures on 01.11.09 and that as their records show it is assigned to Halifax, they will be writing to them to claim it. (there will be a slight residue of around £1300 :T). I have a direct debit to pay my mortgage on the 1st of each month, but the last few months (since March probably), I have received a phone call saying my mortgage was overdue. When I have queried this I was told that my mortgage payment date is actually the 28th of each month (not sure when it changed or why).

My most recent mortgage payment was on 01.09.09 and my next one is due on 01.10.09 (by my reckoning anyway).

Question is - will another payment be due on 01.11.09? Is my mortgage term up in September, October or November. I would imagine my payment in October would be my last one (if, as they think it is due on 28th September, that might make sense). But what happens to the month of October then? Do the Prudential pay out before the 01.11.09??

Sorry, reading that back it doesn't make a lot of sense, but I know what I am trying to say and I hope maybe somebody else does!!

Thanks for reading!

Carol

Mrs_Bumble

You need to ring Halifax, they are the only ones that can tell you for sure.

Mortgage payment dates can move if you are paying last working day of the month and that happens to be on a weekend as the direct debit can't collect on a weekend.

Pru don't pay out before maturity, so check with Halifax when your mortgage is due to complete. Don't cancel your direct debit or anything until after you are absolutely sure it is all paid off, you don't want a missed payment or anything, if additional monies are taken by direct debit then Halifax will refund or you can recall it through your bank under the direct debit guarantee.

Speak to Halifax:)

opinions4u

Contracted mortgage payment dates at the Halifax are the 1st of each calendar month.

But they are happy to receive the payment at any point within the calendar month.

Question is - will another payment be due on 01.11.09?

Almost certainly, because Pru won't get the funds to you before this date.

Is my mortgage term up in September, October or November.

Contractually it will be September. But they will know the maturity date of your endowment so will carry on collecting the direct debit.

Do the Prudential pay out before the 01.11.09??

No. But let's say you pay the full November payment on the 1st of the month and then the Pru proceeds are used to clear the whole mortgage on the 15th November you will only be charged interest up to the 15th - your settlement figure will take in to account that you've paid the full November payment but only been charged half a month's interest.

e.g.

31st October: Debt = £50k
1st November: Direct debit payment = £250 interest only.
15th November: Half a month's interest = £125
15th November: Settlement figure = £50k - £250 + £125 = £49,875 (plus £50 deeds despatch fee!)