Refund from old lender when switching?

Is it normal to get a refund from your old mortgage lender direct into your bank account (where direct debit for mortgage came out of) when switching? I moved from Leeds to TSB and it went through last week and today I got a credit for several hundred into my main bank account, seemingly from myself.  I was puzzled as I know I hadn't paid anything into my account and I spoke to my bank and they checked the sode code of the originating account, which was under my name and it was Leeds Building Society.  Is this fairly common when switching? I had assumed when the switch happened the lawyer would have paid the exact balance owing to Leeds?

Comments

  • MovingForwards
    MovingForwards Posts: 17,138 Forumite
    10,000 Posts Sixth Anniversary Name Dropper Photogenic
    Pro rata refund of the last mortgage payment direct debit, as sometimes there's an overlap.
    Mortgage started 2020, aiming to clear 31/12/2029.
  • WLITC
    WLITC Posts: 1,029 Forumite
    Part of the Furniture 500 Posts Name Dropper Photogenic
    Thanks, makes sense. 
  • user1977
    user1977 Posts: 17,284 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    It's pretty much impossible to accurately predict exactly which day they'll complete on, so the solicitors will, if anything, err on the side of caution and overpay the old mortgage account rather than underpay.
  • WLITC
    WLITC Posts: 1,029 Forumite
    Part of the Furniture 500 Posts Name Dropper Photogenic
    I called Leeds yesterday and it was indeed a refund of an overpayment as part of the transfer to TSB. It was actually more than my usual monthly payment which is still a little confusing but they know what they are doing so I’m just going to enjoy the extra money 😊
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 349.8K Banking & Borrowing
  • 252.6K Reduce Debt & Boost Income
  • 453K Spending & Discounts
  • 242.7K Work, Benefits & Business
  • 619.5K Mortgages, Homes & Bills
  • 176.4K Life & Family
  • 255.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.