Remortgage query

welshwizard1927

I am currently in the process of remortgaging.

Remortgage was due to complete today (Fri 14th). However, solicitors messed up and forgot to call for the funds from new lender (they've admitted fault and apologised). Completion now rearranged for Tues 18th.

However...repayment on existing mortgage normally made on 16th of every month.

My question: do I have to make the repayment on 16th or can it be consolidated into figure given in redemption statement?

Current lender (Bank of Ireland) couldn't give me a straight answer save to say that I wouldn't be in arrears as long as payment was made within calendar month. Broker useless and clueless. Solicitors...well see above.

Any thoughts would be much appreciated.

Lilla_D

Make the payment as normal and get a proportionate refund after completing the remortgage. The new lender is unlikely to charge you until some time next month anyway. It's better to be safe than sorry with mortgage payments potentially be classified as late/missed.

P.s. Even if you had completed today, I would have advised you not to cancel your direct debit, but let the old lender process the fact that they lost you, even if it means that they take another payment and then refund you. As said, better to be safe than sorry.

kingstreet

Your solicitor will be in receipt of a redemption statement from your current lender which shows the amount to redeem your mortgage and this will also include a daily amount to add on for upto a week, should the redemption not be done on the target date.

This will usually exclude any future payments.

The payment due next week will be debited by your current lender and then refunded back to your account within the two weeks that follow. Either way, it's too late to attempt to cancel the mandate as banks typically require at least three working days' notice.

welshwizard1927

Thanks kingstreet - direct debit has already been cancelled (it will be processed as a manual payment if it needs to be paid, and BoI have already confirmed that's permissible, provided its paid by end of the month). My question is whether it has to be paid, or whether it can be mopped up in the redemption?

Thrugelmir

The redemption figure provided at the date of issue to the solicitor will assume that no future payments will be made.