Remortage date advice

heaney012

Hi all,

I am now coming up to the end of my fixed mortgage (31/12/16) and this is the first mortgage I have had - meaning I'm remortgaging for the first time. I wondered if anybody could share their experience in the process to answer my questions.

If I look to remortgage on 01/01/17 so that it is the next working day after my penalties expire (as advised) what would happen with the payment I would be due to make on 1st Jan? Firstly, as 1st Jan is a bank holiday (or a Sunday this time) I would not make the payment until 3rd Jan. If I instruct my re-mortgage deal to begin on 1st Jan, what will happen with that payment? All of the transactions will process on 3rd Jan (new mortgage/old payment) and I want to avoid overpaying and/or having to go through the process to claim anything back (i.e. my re-mortgage pays the full amount and then I additionally make the payment). Is this a normal thing that's taken into account when you ask for your settlement value? Should I remortgage a few days after 1st Jan to avoid this? Do I have nothing to be concerned about?

Any help is much appreciated!

Thanks,

Liam

Westminster

I'm sure a broker will be along to confirm, but the first payment on your remortgage would not be due on the 1st Jan (probably around a month later).

Any payment collected by your current lender would then be refunded fairly promptly (well before the payment on the new mortgage is due) once the mortgage is redeemed by the conveyencer handling the remortgage.

kingstreet

The solicitor handling the remortgage will get a redemption statement which confirms when the last payment was/is made.

You may wish to cancel the direct debit to prevent further payments after that date.

NB if completion doesn't take place, you may wish to make the payment by card to ensure you avoid an arrears marker.

Glover1862

Have a look at deals your current lender can offer, I've just switched products with Coop, took exactly 4 minutes. No need for a re assessment if staying with current lender and no worry about dates etc. The market leading rate was only 0.2% cheaper (£6 per month) so well worth paying the extra for no hassle.