Mortgage fixed rate coming to an end and last direct debit

DennisTenus

My Santander Mortgage fixed rate is coming to an end so switching to another banks' deal. I've been told that the last direct debit will still be taken and then refunded around 12 working days later as it's taken on the day it ends so can't be stopped. They've advised me against cancelling it but I don't want them to have my money for ages. Seems like a ridiculous situation to me.

Anyway, if I cancel the DD so the payment fails, will it actually affect my credit score? Also will they fine or charge me for failed DD payment? The DD is coming from my Santander 123 Lite account so it's not like it's coming from another bank.

Thanks

penners324

They'll very likely charge for the rejected DD and report it to the CRAs as a failed payment.

DennisTenus

Whats CRAs?

Edi81

Credit Reference Agency
They hold the data on your credit history including missed payments. This should be what you are concerned about rather than a mythical credit score.

DennisTenus

Ok so is your recommendation not to cancel it?

csgohan4

Don't cancel it, it will cause problems on your credit file if you do so. Are you worried about not having enough money end of the month? if so, that is a worry and consider your outgoings