Mortgage payment

harry_et

Hi, my mortgage payment is due on the same day as my house sale will complete.
Might sound daft but will I still have to pay it? It will be collected by d/d on the morning the sale goes through

Senior_Paper_Monitor

YES - It will be refunded with 14 days and your credit record will not show a missed payment.

Let_Us_See

Perhaps not? Surely, this payment will be taken into account in the redemption statement requested by the solicitor a few days before completion from existing lender?

Senior_Paper_Monitor

Redemption statements take no account of 'future payments' at the point of calculation - they do take into account ongoing interest to the valid date.


In the case concerned the current lender will 'demand' the valid DD payment a couple of days previously, as they have no way of telling that the mortgage will actually be redeemed.

kingstreet

I'd say not too.

Check with solicitor. Redemption statement will assume last payment date probably prior to this one and interest will have been included upto the expected redemption date.

I'd think about cancelling the DD to prevent the payment going out, then you have no worry about a refund.

If completion doesn't take place for some reason, you can always call up and pay by card on the day.

kingstreet

If you've exchanged contracts ahead of completion, it's less risky to cancel the DDM as completion is unlikely to be delayed.

If you are exchanging and completing the same day, a delay can't be ruled out.