mortgage payment taken after mortgage has been redeemed

kevin0410

we completed our house move on 24 feb switching lenders and redeeming mortgage in the process. however on 1 march the regular mortgage payment was taken which we were not expecting. is it normal to for a lender to take a payment after the mortgage has been redeemed?

many thanks
kevin

getmore4less

I think it can happen if the dates are close.

Get onto them to refund ASAP.

Can be a good idea to cancell your DD rather than wait for an originator to stop using them applies to any payments you expect to stop.

Wh05apk

DDRs are set up a couple of weeks before they are due, so it would already be in place when you switched, contact your previosu lender they should return it within a few days.

dunstonh

Quite normal and very common. It happens on early redemptions all the time. Typically you would expect a warning to be issued to you about it so you are prepared. Direct debits can be submitted as much as 3 weeks in advance of their due date. It will come back within a week to 10 days.

Leon_W

Agree with dunstonh. It's very common and should be allowed for, there just isn't enough time to ammend the payment details. Lenders usually automatically refund this with no problem although it can take a few days.

I disagree with getmore4less on one point. Never cancel your DD as in all likelyhood it could possibly show as a late or missed payment on your credit file which you will have to move heaven and earth to get rectified.

kevin0410

ok, an update to this.
we have since received a very late letter from halifax saying the figure given for total amount owing at completion was based on the march mortgage payment being made.
however, i have been over the figures again and again and i believe i should not have had to make this payment. i will ring them, but have i any chance of getting this money back?
thanks
kevin

dunstonh

we have since received a very late letter from halifax saying the figure given for total amount owing at completion was based on the march mortgage payment being made.

The solicitor would have known this as well as the same sort of information goes to them.

however, i have been over the figures again and again and i believe i should not have had to make this payment. i will ring them, but have i any chance of getting this money back?

If it was charged in error then yes. If it was not and was meant to be taken then no.

opinions4u

kevin0410 wrote: »

we have since received a very late letter from halifax saying the figure given for total amount owing at completion was based on the march mortgage payment being made.

A settlement figure for 24th Feb cannot account for the March mortgage payment being made. So either you've interpreted the letter incorrectly or somebody has written nonsense.

Don't rule out a mixture of both!

however, i have been over the figures again and again and i believe i should not have had to make this payment. i will ring them, but have i any chance of getting this money back?

If they've made a mistake, you will get the money back. You will also get a closing statement for the mortgage. If the additional payment doesn't appear on it (which it shouldn't) then you are owed it.