Mortgage payments when moving home and lender

rubberducky1

We are moving house at the end of the week, completing on 30th September 2011 and moving lender from NatWest to Skipton.

My existing NatWest mortgage normally pays out on 1st of the month so, as we are redeeming that mortgage on 30th September, I presume that payment will not go out on 1st October?

So, will Skipton take my first month's mortgage payment on 1st October or 1st November? i.e. what mortgage payments will I have to pay for in October?

Just trying to get my figures straight!

rubberducky1

Can no one shed any light on this for me?

jonomassey

We have just moved house and completed on the 16th September and Santander are not taking the first payment until the 1st of November and this payment will be for September 16th to 30th and then all October so will be slightly more. In terms of your old mortgage with Nat West I would contact your solicitor for advice on whether you should delete your existing DD just in case Natwest try to still take it on the 1st.

kingstreet

If you are completing on 30 September, the redemption figure will assume you do not make a payment on 1 October. However the NatWest system will not be able to stop the request, so you need to cancel your direct debit to them immediately. If you don't it'll probably take them a few weeks to refund the money back to you.

On the subject of first payments, former building societies like Santander and current ones like Skipton collect your mortgage payments in advance. Expect a first payment in the middle of October and the first regular payment on 1 November, or possibly a two month payment on 1 November.

Banks like HSBC collect in arrears, so you'd pay just one payment on 1 November.