Mortgage company taking direct debit on wrong date !

Green2

I hope this is the right place to post.
I need some advice - we moved our mortgage to a better deal at the end of our fixed rate term, and the first direct debit to the new mortgage company is due out on the 1st of the next month.
We've just checked our account, and apparently the company has decided to take the DD tomorrow instead ! This date was not agreed and is not mentioned in any of the correspondence with them, as the 1st was agreed. It now looks like they are also set to take the same amount again on the 1st as well! We've been on the phone to the company's call centre all morning, and keep getting passed around - nobody knows anything at that end of things. We are waiting for a ring back (won't hold my breath) and we really do not have sufficient funds to pay the mortgage twice in two weeks ! what can we do ? Any ideas how to fix this c*ck-up ?
thanks in advance

kingstreet

When you start a mortgage part way through a month, the first payment, which is known as accrued interest, can be taken a couple of weeks into the mortgage.

This payment represents interest from the date of completion, upto the first regular payment date.

For example, if you borrow £100,000 at 5% (25yr repayment mortgage) and complete on 15th, the first payment will be £205.48 which is accrued interest from 15th to 30th. The first regular payment on 1st will be the normal £584.59. Sometimes the direct debit "lag" means these payments are taken together.

You should find your last payment to your previous mortgage was more than a month ago, or part of it caused the redemption figure to be lower than expected. You should therefore have had some surplus funds left over after the old mortgage was redeemed.

When remortgaging, it's important to ensure the redemption is timed precisely to avoid under-borrowing and leaving yourselves short in the first month.