How to avoid final interest only payment on mortgage prior to sale

bpmoneill

My house went sale agreed back at the end of July and it has taken until now to progress the sale to near completion.  Prior to this it was rented out and so, since July I have had to cover the interest only mortgage payments myself.  It seems that the sale could complete within the next 2 weeks, all that is required now is signatures on both sides.  My next mortgage payment is due on the 12th Novemeber.  My question is, can I avoid paying this final mortgage payment at all or even make this final payment a partial payment?  As it is interest only it seems like money down the pan if the sale completes not long after the 12th.  

davidmcn

Interest is calculated on a daily basis, even if you overpay then any excess will be refunded to you immediately after completion.

[Deleted User]

worst thing you could do is not make a mortgage payment. Just have the payment debited, and any excess due back will automatically be refunded by the lender shortly after completion. 

ACG

That money is not lost.
If you do not pay it via your normal monthly payment, your solicitor will have to pay it with the proceeds from the sale of the property. If it gets missed by the solicitor, the lender will end up sending you an invoice down the line which may even be more than your monthly payment would have been. 

foxy-stoat

Isn't the interest paid in arrears, so just pay it or it may complicate things for you when you come to complete.

bpmoneill

Thanks to all.  When I got through to the bank they confirmed that i could cancel the DD and then when my solicitor requests the final settlement figure the interest up to that point, within the month of Nov, would be included in the figure.  If I dont cancel the DD then any overpayment will be refunded.