Home mover mortgage repayment and completion question

Lukeowl

Hi, I'm hoping someone might be able to help.

We are moving home due to complete 25th of this month. We have an existing mortgage with RBS and repayment date for that mortgage is also 25th of each month.

We are not porting our existing mortgage deal but are staying with RBS on a new mortgage account. On application we requested repayment date for direct debit to remain as 25th each month.

My concern is whether they will still take repayment on this house the day we move out of it and when they will draw first payment (approx £250 increase per month) on new house.

I don't want to be faced with a month where we end up having to pay two lots of mortgage repayments in quick succession when I have to deal with the general cost of living and moving as well.

Should I cancel direct debit for the existing mortgage just in case?

Has anyone got any experience in this area from a similar situation?

Thanks in advance.

maninthestreet

Are you paying in advance or in arrears for your current mortgage? Same question for your new mortgage?

Lukeowl

I honestly have no idea on either front!

tigsly

I was told to continue to pay my mortgage otherwise the mortgage offer would not be valid (I'm with HSBC so it may be different)..

I'd ring your bank!

Lukeowl

I called them on Wednesday. Held for about 20 mins, eventually spoke to someone who said we would pay one or the other, not both, then rambled on about if we did pay both they would refund but that takes 5 working days and didn't really sound too sure about the whole thing, which doesn't fill me with confidence. I'm happy to pay for the existing mortgage as long as I don't have to pay for the new one at the same time (or within a couple of weeks) and then again in 1 month time. It will cripple us.

As it is, our direct debit on current mortgage is set to overpay by £115 so I'm not even sure how that will work should the payment still be taken. It's a bit scary!

ethank

The redemption balance should include the final payment. Have you asked whoever you are speaking to on the phone if they spoke the redemptions team?

Marshyman

Ask them to change your direct debit date to the last day of the month, if you then complete on the 25th most lenders wont take your first payment until the following month which will normally include residual interest for the last few days of the previous month when you completed, so the first payment will be slightly higher than your normal payments but with just 5 days of interest being applied it shouldn't be much of an increase