Quick question...

mintymoneysaver

I remortgaged yesterday. A dd has come out of my bank today for the full mortgage payment to the old mortgage. Will they refund some of this as I assume you pay a month in advance?
I know about the payment to the new lender being larger at first so hoping I will get some of this back to recoup my losses!

mintymoneysaver

Anyone?.....

carlos700

I have just remorgaged to but i stayed with the same lender just put me onto a better fixed rate deal where it would save me money per month.They said the remorgage was complete so i did not expect them to take a payment for my old morgage at the end of the month but they did the full amount.They said with morgages they work a month behind so we still owed them a payment off our old morgage and our new payments would start the month after.I would think they have done this with you so i would not think that you will be getting any money back .

Leon_W

It seems like there would have been no time to cancel the DD as you completed the day before. It really depends on who your lender is and how the interest is calculated, but in my own case, I remortgaged from Abbey to Halifax and Abbey part refunded me.

Hope this helps.

carlos700

Hi Leon i am wondering now if they should have took my payment out at the end of last month when my morgage had started.They did try to explain to me they work in arrears but do you think this sounds right?

Leon_W

If they work in arrears then it does sound right. Your new mortgage payment is taken a month after the new deal started.

Scott

If your mortgage is paid in arrears, you pay each month for the month that has passed (i.e. February's payment covers the time from January's payment forward).

If you pay in advance, you're paying for February -> March.

Call your lender, find out how your interest is applied, and see if the refund, if any, has been actioned (they'll need to wait for the DD to clear, though).