When will existing lender take last payment?

ferry

A bit of quick advice please-We are remortgaging to a different lender on 1st Feb.
Will our existing lender Nationwide take a (final) payment from us on the 1st Feb and our new lender(NatWest) also take their(first) payment from us on that day too..?

Not sure as you can tell how it will all work with last/first payments!

Just thinking out loud!

Thanks as usual
F

kingstreet

If your mortgage completes on 1st Feb, your last payment to your current lender will be 1st January. The lender will calculate a settlement figure assuming this. The solicitor gets the settlement figure for 1st February and is given a daily rate to add on should completion be delayed to the 2nd or 3rd etc.

Your first payment to your new lender depends on what type of lender it is. Typically, banks charge in arrears, building societies and former building societies charge in advance. I'm not sure if NatWest follows the pattern TBH.

In the worst case scenario, you might have to pay a month's interest around two weeks after completion, for the month of February with your first regular monthly payment of capital & interest (if applicable) on 1st March.

Your new mortgage payments will be notified to you just after completion.