property sale completion date same as mortgage payment

Northernspirit

Good afternoon.

I have a slightly unusual set of circumstances. After a while of trying my wife and I have finally managed to sell our flat and the exchange of contract and completion date are both tomorrow which is incidentally the same day our mortgage payment is due. We aren't buying another property, instead renting for a while to save up for a big deposit for a house so we will be mortgage free after tomorrow.

My question is, given that my payment of £705 is due tomorrow and will be taken out as normal, is it worth me cancelling my direct debit now to save me paying £500 worth of interest? I know my solicitor plans to speak to my mortgage company tomorrow for the final redemption amount. Any advice will be greatly appreciated thank you.

betmunch

Let the DD go through in case there's some reason you can't complete tomorrow.

If everything goes according to plan you will have paid more than you need to and will be refunded any excess.

If you cancel the DD and something goes wrong with the completion you could end up with a missed payment on your file and problems getting your next mortgage later on

lee111s

I had this when remortgaging. It's probably too late now given that it's happening tomorrow.


I spoke to my old lender who changed my payment date to a week after I was due to "complete" if you will. This meant there was a period to still make the payment if something went wrong but saved them the hassle of having to refund as they were effectively getting payment as the mortgage was being completely repaid - the redemption figure they provided the solicitor would have factored in there not being a payment on that day.