Mortgage payment just before completition

quantic

We are due to complete on our house sale on Wednesday, our mortgage payment comes out on Monday, our first payment (when we took out the mortgage) was before we moved in so I assume we pay in advance rather than in arrears.

By this logic our payment on Monday assumes we will be paying interest for the entire month when in reality it will be for 2 days. Will this be taken into account when we get the difference from our sale or will we be losing hundreds for the sake of 2 days?

I would assume it is calculated to the day once the sale is processed but I am not sure how this works exactly?

kingstreet

The payment will cause your redemption figure to fall, or if it's too late for that, it will be refunded back to the account it came from, so don't cancel the direct debit.

Check with solicitor for "last payment is assumed on DD/MM/YYYY date" on redemption statement and check with lender.

TBagpuss

No, you won't be losing hundreds. Most mortgages have interest calculated to the day.

When I moved, I had made my normal mortgage payment on 1st , and then completed and moved on 3rd of the month. I got a refund into my account about 4 days after completion.

Thrugelmir

quantic wrote: »

Will this be taken into account when we get the difference from our sale or will we be losing hundreds for the sake of 2 days?

Once the transaction is finalised. Then any overpayments will be refunded. The system is geared to a safety first policy. Not a speculative if payments are made scenario. The solicitor is duty bound to ensure that this is the case.