Moving mortgage lender - overlap in payments

kenzie123

Hello,
We are in the process of moving from one mortgage lender to another.

Our old lender has an early repayment charge in place, so a completion date can't be set until that is over.
It ends on 30th September and our usual mortgage monthly payment is due to go out on 1st October - by this date it will be at a standard variable interest rate, not the fixed rate we usually pay. I don't imagine our new mortgage will be completed by the 1st because of the ERC.

No one seems to be able to tell me if there will be an overlap here or if we have to speak to anyone - I've called the old and new lenders, plus the legal team looking after it on behalf of the new lender - surely this happens all the time but no one knows the process or what will happen, I just keep being passed around.
Crucially need to know if our mortgage will go out from both our old lender and our new lender on the same date. I doubt it if the completion date isn't set in time but this messes up our monthly payments somewhat.

Has anyone done this before that can tell me how it worked?

Will we be charged a higher interest with our old lender until the completion date is agreed and if so at what point will be get the remainder of the money back?

Many thanks

Thrugelmir

New lender will not collect payment until the 1st of the month following completion. 
If the remortgage isn't completed on the 1st October you will be charged interest at the SVR on a daily basis.
Make the payment to your existing lender on the first as normal. Any overpayment made will be refunded to you within around 10 days following completion of the remortgage. 

kenzie123

Thrugelmir said:

New lender will not collect payment until the 1st of the month following completion. 
If the remortgage isn't completed on the 1st October you will be charged interest at the SVR on a daily basis.
Make the payment to your existing lender on the first as normal. Any overpayment made will be refunded to you within around 10 days following completion of the remortgage. 

Thank you very much for your response
Once the mortgage is completed, will there be a gap of time that we haven't paid for?
e.g if our old lender takes usual payment on 1st Oct, the completion happens on 5th Oct, we pay 5 days of SVR and then for the rest of October, is that paid for within the 1st November payment?
thank you again 

getmore4less

Always plan cash flow for double payment at changeover when changing lender or moving house. 

paddyandstumpy

Are you sure your ERC is payable until the day before you move to SVR? 

We remortgaged recently, our 2 year fix was renewable end May, but Nationwide didn't apply the ERC if we moved away in the month of May, so we had that month to leave penalty free, whilst still benefiting from the fixed rate. 

Thrugelmir

kenzie123 said:

Thrugelmir said:

New lender will not collect payment until the 1st of the month following completion. 
If the remortgage isn't completed on the 1st October you will be charged interest at the SVR on a daily basis.
Make the payment to your existing lender on the first as normal. Any overpayment made will be refunded to you within around 10 days following completion of the remortgage. 

Thank you very much for your response
Once the mortgage is completed, will there be a gap of time that we haven't paid for?
e.g if our old lender takes usual payment on 1st Oct, the completion happens on 5th Oct, we pay 5 days of SVR and then for the rest of October, is that paid for within the 1st November payment?
thank you again 

There'll be no gap. Your existing lender will charge until the final day. Your new lender likewise from the next. Everything will come out in the wash so to speak. 

kenzie123

paddyandstumpy said:

Are you sure your ERC is payable until the day before you move to SVR? 

We remortgaged recently, our 2 year fix was renewable end May, but Nationwide didn't apply the ERC if we moved away in the month of May, so we had that month to leave penalty free, whilst still benefiting from the fixed rate. 

I believe that it's applicable right to the end - although I could ring up just to double check as sometimes the people over the phone give different answers. If that was the case it would be so much easier - seems like the best and most sensible thing as we aren't technically paying early, just moving.
Thank you very much I will double check this :-)