Remortgage payment dates

Hayleyphelan

Hey Guys.

Have been a reader in here for a while and found loads of helpful info, was wondering if someone could help with a query.

So we have successfully obtained a remortgage deal which is due to complete on 5th September.

Now we have had no documentation through the post at all from our existing lender to confirm the switch or advise when our last payment date would be or a "final figure".

We normally pay that mortgage on the 1st of each month.

The new mortgage first payment is being taken on 7th September.

So am I going to be making two payments in the space of a week? Only realised this evening and too late to call Santander now but thought I would see if anyone knew.

TIA

Hayley

glosoli

The mortgage payment taken in arrears, so the repayment taken on the 1st of September will be for the interest that accrued for the month of August. The redemption figure will then be inclusive of interest that will accrue between 1st of September ot the 5th of September, until the mortgage account is shut down.

The repayment with the new provider if taken on the 7th of September generally should be a lower repayment, to reflect the fact that only two days interest will have accrued that payment. It should be a full "capital" repayment but only a partial interest payment.

If you are concerned with having two repayments on the same week then possibly you could change the repayment date from the 1st to later in the month with your existing provider so that the mortgage is fully repaid by the time the next payment is due.

McDizzle

Hi Hayley,

This depends on the lenders process. They may have included your final payment in the redemption figure they produced and sent to your new lender. If so then it's likely you wont make 2 payments as this will have already been taken.

Glosoli I have to contradict your point about payments being in arrears. Most mortgage payments are made in advance so if you pay on 1st sept you are paying for the month of sept not aug although this may vary for some lenders.

If they don't do this then it's possible that yes you will make 2 payments in the space of a week. However if you pay in advance your current lender should refund you for the majority of that final payment taken as normally you pay in advance so when you make a payment on the 1st of Sep you are paying for the entire month of september not the previous month. As such you only owe them money for 7 days of September so they should refund the other 2 3rds of your payment back to you fairly quickly.