Old mortgage payment still going out after switching ?

Paulpen

Hi guys

We are moving from Barclays to Virgin Money tomorrow as a remortgage. The Barclays payment always went out on the first of the month and the Virgin one is set up to do them same.

Having looked at my bank account this morning its showing that the usual Barclasy payment is pending for tomorrow - will the payment still be taken even though we should officially be with Virgin Money tomorrow ?

davidmcn

Yes, payments will continue as normal until completion happens and the old account is redeemed. Direct debits are set up some time in advance. You'll get a refund of any overpayments, usually pretty quickly.

[Deleted User]

Until Barclays have been paid in full, your mortgage still stands with them. They will call for payment about 7 days beforehand.
If the amount paid by virgin is equal to your current balance then Barclays will need to reimburse you

Paulpen

So in theory it shouldnt go out but if it does it will be back in the account within a day or two then ?

Just trying to keep the account healthy as they £3500 shortfall has gone out and if both mortgages take payment ill be rather skint for a bit !

Thrugelmir

Paulpen said:

So in theory it shouldnt go out but if it does it will be back in the account within a day or two then ?

With direct debits being set up 10 days in advance. The direct debit will be taken. Might take later than a day or two to be returned. 

Cscott139

If the mortgage completes today you could get your bank to cancel the payment to avoid having to wait for the refund. Maybe best to call Barclays first to ensure you wont incur any costs etc

davidmcn

Cscott139 said:

If the mortgage completes today you could get your bank to cancel the payment

Doubt it - if the payment was due today then the money probably went overnight.

Paulpen

I can confirm that Barclays payment went out this morning.

Virgin have not yet taken payment and it looks like they will take it next week - im trying to get hold of them to confirm this and also find my Virgin account number so I can get to the details online

dunstonh

All quite normal.   It will come back in about 2 weeks.  Your mortgage adviser would typically warn you of this potential scenario.

Thrugelmir

Paulpen said:

Virgin have not yet taken payment and it looks like they will take it next week - im trying to get hold of them to confirm this and also find my Virgin account number so I can get to the details online

They are required to give you adequate warning of the amount to be collected. Until remortgage completion actually takes place. They aren't in a position to set the wheels in motion. 

Paulpen

I assume it will have to be in writing ?

They confirmed the direct debit account details a while back and the first payment about is there too but no date