FD mortgage set up as standing order

Benzine

Hi, I've had a mortgage with First Direct since February. I always assumed it was set up as a DD but now I have moved to Nationwide it turns out they set it up as a standing order.

This shouldn't really matter unless they want to change the amount but it seems a strange way to have it set up for a mortgage.

I'd appreciate any advice on whether this is unusual and if I should ask to change it to a direct debit.

Thanks

ACG

Only the account holder can set up a standing order.

Edit:

A standing order is different to a Direct Debit payment. A standing order is essentially an instruction from the payer to their bank, telling their bank to 'push' funds to another person or organisation. In contrast, when you set up a Direct Debit, the person or organisation receiving payment asks permission from the payer to 'pull' funds from their account on a recurring basis.

https://gocardless.com/guides/posts/guide-to-standing-orders/

Benzine

Thanks. This is why I'm confused as I did not set this up, my bank did.

ACG

If it is a SO, then you should get it changed to a DD.
Double check with your bank that it is and if it is how it happened.

Benzine

Both Nationwide and First Direct have confirmed it's a standing order. I've messaged FD and asked for an explanation and to change it to a direct debit. I thought it was odd and just wanted to make sure before contacting them again.

Thanks for your help

Benzine

I received this response from FD;

"To respond to both your previous messages. Yes it is normal for us to use standing order payments for the mortgage, we are not able to set the payment up as a direct debit.

Only the bank who hold the account, can set up standing orders. You as the customer can instruct us to do it, and we can also set them up where it is appropriate to do so, such as when we have an agreement to repay a loan or mortgage and you have agreed which account you want this payment to come from".

It seems very odd that they say they're unable to set it up as a direct debit.

ACG

You will need to fill out a DD mandate with your mortgage lender.
They will then send that over to your bank to set up the DD.

All seems very strange though.

Benzine

First Direct are my mortgage lender and they're refusing to set it up. I know they're highly rated but I've had nothing but problems with them!