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Woolwich Mortgage - arrears or advance payments?
jc86
Posts: 22 Forumite
As title really - anyone got any insight? Thanks
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Could you put your question into context. By supplying more detail.0
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I am due to pay off mortgage on Monday due to selling house. This is the same day that my payment usually goes out. So, assuming the payment goes out, will Woolwich refund it (as its paid for the upcoming month) or keep it (as its paid for the previous month). Thanks0
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The redemption figure supplied to your solicitor will assume the last payment was made last month and any interest will have been calculated up to the redemption date.
If you allow the payment to go through, it will be refunded.
I would have cancelled the DD a few days ago, particularly if you have exchanged contracts.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 -
Your solicitor will be basing settlement on the payment not having been made. Any overpayment made will be refunded back to you.0
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great - thanks all0
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I would not cancel the DDM now, BTW.
They will probably want to refund the payment back to the account it came from and they may not be able to do that if you cancel the mandate.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 -
I am due to pay off mortgage on Monday due to selling house. This is the same day that my payment usually goes out. So, assuming the payment goes out, will Woolwich refund it (as its paid for the upcoming month) or keep it (as its paid for the previous month). Thanks
Most(might be all) Woolwich mortgages don't work like that.
The interest accumulates daily and gets added monthly increasing the ballance
The payments come off the ballance.0 -
getmore4less wrote: »Most(might be all) Woolwich mortgages don't work like that.
The interest accumulates daily and gets added monthly increasing the ballance
The payments come off the ballance.
Our Woolwich mortgage doesn't work in the way you describe.
The interest appears to be based on the capital owing as at 01 Oct and is applied at the appropriate rate(s) on 30 Sep the following year.
The interim monthly payments we make do not seem to affect this.
Only if the interim payment is treated as a 'part payoff' (not sure what triggers this), is the balance on which interest is calculated adjusted.0
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