mortgage

snookey

Bear with me and sorry if this comes across as my being thick.:o.

My question is , if you set up a direct debit for your mortgage and the interest rate changes do you have to amend the direct debit each time or will the mortgage just inform you its changed and take out the due payment.

nom_de_plume

A standing order would require you to change the payment but a direct debit is changed by your lender. They are obliged to warn you of any change in advance.

ACG

No, a DD is changed by the company.
A Standing order on the other hand is changed by yourself.

snookey

Thankyou the reason I was asking was that our mortgage provider said that we had to ring them to change the direct debit and until then they would take out the same amount.
We had arrears on the mortgage and went to court. The judge made an order for us to pay back 50.00 per month on top of our mortgage to clear the arrears over 3 years. The mortgage company told us the amount we had to pay including the arrears of 50.00 on top. This we have been doing only to find that
the mortgage company had been taking out 150.00 per month instead of the 50.00. They had not accounted for the interest payment from the dwp.
As a consequence our arrears have been paid in a year not three as agreed. Whilst Im glad to have the debt paid we have been under immense pressure to make sure that the amount they demanded was paid.
Does anybody know if what they have done breaks the court agreement.
We were only informed last month that the arrears were paid off and even then the letter said we should continue to pay the 50.00 per month on top of our mortgage.
Iv asked for a breakdown of payments made and also the amount we need to pay when taking in the dwp payment each month from now on.