Refund from old lender when switching? 28 May 2021 at 6:06PM in Mortgages & endowments 4 replies 121 views

WLITC

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?

MovingForwards

Pro rata refund of the last mortgage payment direct debit, as sometimes there's an overlap.

WLITC

Thanks, makes sense. 

user1977

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

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 😊