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£250 charge for a mortgage direct debit change?!?
Lollymoly
Posts: 31 Forumite
Hi,
I hope I have this in the correct forum, but I'm posting on behalf of my parents. They need to change banks and therefore their direct debit for their mortgage will have to change but their mortgage leader is going to charge them £250 for changing. Surely this can not be correct. Surely there shouldn't be a charge for changing a direct debit...
Any advice greatly appreciated.
I hope I have this in the correct forum, but I'm posting on behalf of my parents. They need to change banks and therefore their direct debit for their mortgage will have to change but their mortgage leader is going to charge them £250 for changing. Surely this can not be correct. Surely there shouldn't be a charge for changing a direct debit...
Any advice greatly appreciated.
Total number of freebies received (starting December 2007) = 31 to date
:j Claim against Lloyds bank charges Jan 2007- £987
:j Claim against further Lloyds bank charges October 2007- ongoing
:j Claim against Lloyds bank charges Jan 2007- £987
:j Claim against further Lloyds bank charges October 2007- ongoing
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Comments
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Wow that seems extortionate! I'd be writing a very strongly worded complaint to the lender asking them to justify how it costs them £250 to administrate such a change!
Have you checked the mortgage small print to see if this was in the terms and conditions? Either way I'd still challenge it!0 -
Who is the lender?0
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None of the banks charge anything for changing bank details on a direct debit.
Are they perhaps making other changes at the same time? i.e. switching from interest only to repayment basis. Or changing the date of the direct debit (so some catch up interest will need to be paid)?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
I'd make a polite enquiry to better understand the situation first.monty-doggy wrote: »Wow that seems extortionate! I'd be writing a very strongly worded complaint to the lender asking them to justify how it costs them £250 to administrate such a change!
Have you checked the mortgage small print to see if this was in the terms and conditions? Either way I'd still challenge it!0 -
I'm with dunston. I suspect there is a change of payment date and that means the payment of some interest to stop the account being in arrears.
I wanted to change ours from 30th, to 1st. I would have had to pay a full month's interest to achieve that.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
We changed banks on our mortgage recently and as long as the payment day remains as selected by the bank / BS then all is hunky.
It was free to make the switch by the way!!0 -
This is 99.9 % certain to be miss communication.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I think that was the point - other factors are going on too, not a simple bank change..0
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The poster says her parents are being charged £250 simply for changing a DDM.
It makes sense that no UK bank would be allowed by their marketing department to levy such a charge for an everyday occurrence, not to mention the regulator.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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