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Great money maker , if your a lender
shadyadie
Posts: 53 Forumite
I have just "discovered" that my new mortgage lender is taking the money from my current account 14 days before they place it in to my mortgage account. When I phoned to query they said there was nothing wrong it's just the way it's set up.
They set it up to take the money on the 16th and it doesn't arrive in my Mortgage account until the last day of the month.
After a lengthy phone call they are supposed to be sending me a direct debit mandate to change the date to the 30th and it will still go in at the end of the month.
If they do this for all mortgages that is some money they are holding on too.
They set it up to take the money on the 16th and it doesn't arrive in my Mortgage account until the last day of the month.
After a lengthy phone call they are supposed to be sending me a direct debit mandate to change the date to the 30th and it will still go in at the end of the month.
If they do this for all mortgages that is some money they are holding on too.
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Comments
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Is the current payment made by direct debit, or standing order?
If it's DD, the lender debits the money from the account a few days before it is needed.
If it's SO, you have instructed your bank to pay the lender that amount on that set date, the lender cannot request payment from the bank.
One is based on "take" the other on "send" so the onus in each case is different.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 -
Still shouldn't take 2 weeks to be applied to the mortgage account."You were only supposed to blow the bl**dy doors off!!"0
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It can depend on the mortgage age as to when this happens. Old building society mortgages tended to use a central collections account which would then see the money, when cleared, passed onto the mortgage account. These ones also tended to use standing orders rather than direct debit. So, a timescale of 14 days would not be unexpected.
A modern mortgage account using direct debit would expect to see either no difference if the lender pre-funds it or up to around 8 days which is when the direct debit will be known to be cleared.
If it is standing order, you would expect longer than direct debit. Especially if your standing order date does not tie in with the required payment date that a direct debit would use.After a lengthy phone call they are supposed to be sending me a direct debit mandate to change the date to the 30th and it will still go in at the end of the month.
A new direct debit mandate is not required for change of date. Are you perhaps on standing order and changing to direct debit?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
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