Remortgage transfer date help

scoey8

Hi all, 

I'm probably being thick here but just wanted to check something re transfer date when remortgaging. I'm currently with Vida and pay £722 per month, changing to Halifax at £522 per month. I pay Vida on the first of the month. 

Is it always best to transfer at the end of the month? What happens if say it's a week into the month and ive already paid the £722 to Vida, will Halifax want the interest to the end of the month also? Hope this makes sense. Thanks 

PerfectMess

You will get an apportioned refund back from Vida based on the date the remortgage goes through and will then owe Halifax the interest from the date they take over the charge. 

scoey8

PerfectMess said:

You will get an apportioned refund back from Vida based on the date the remortgage goes through and will then owe Halifax the interest from the date they take over the charge. 

Thanks for the reply. It was just the advisor at Halifax told me the best time to change was the end of the month but it doesn't look like the conveyancer can make it happen until a week into November, so I didn't want to be paying out two lots of money and the extra to Vida just coming off the mortgage rather than coming back to me as a 'refund'. 

kingstreet

Your conveyancer will obtain a redemption figure based on your last month's payment with a daily rate to add to it if there is any delay. Stop any direct debit if you want to avoid the chance of having to wait a couple of weeks for a refund. If for some reason completion doesn't take place, you can always pay the existing lender by card for that month.

PerfectMess

 Thanks for the reply. It was just the advisor at Halifax told me the best time to change was the end of the month but it doesn't look like the conveyancer can make it happen until a week into November, so I didn't want to be paying out two lots of money and the extra to Vida just coming off the mortgage rather than coming back to me as a 'refund'. 

When we remortgaged at our old house we just left our direct debits alone, it came out on the 3rd July due to weekend and we had a refund of the full payment by the 14th July. Our new mortgage (interest only) first payment was then taken 1st Aug followed by usual monthly payment 1st sept. I’m not sure of the date the remortgage actually went through though. I assume if we’d actually completed mid month we wouldn’t have got a full refund and the first payment to the new bank would have been lower to account for who the interest was paid to. 

scoey8

PerfectMess said:

 Thanks for the reply. It was just the advisor at Halifax told me the best time to change was the end of the month but it doesn't look like the conveyancer can make it happen until a week into November, so I didn't want to be paying out two lots of money and the extra to Vida just coming off the mortgage rather than coming back to me as a 'refund'. 

When we remortgaged at our old house we just left our direct debits alone, it came out on the 3rd July due to weekend and we had a refund of the full payment by the 14th July. Our new mortgage (interest only) first payment was then taken 1st Aug followed by usual monthly payment 1st sept. I’m not sure of the date the remortgage actually went through though. I assume if we’d actually completed mid month we wouldn’t have got a full refund and the first payment to the new bank would have been lower to account for who the interest was paid to. 

Thanks again. I now have some dates;

Mortgage transfer is set to complete on 2nd November. 

Direct Debit payment goes to old lender on 1st November. 

I take it i should receive a full refund of the payment to old lender and then Halifax will charge me for the interest on this months  payment plus next months interest plus repayment portion on the first of next month?  

Edit: Reading the offer it says the payments will be an initial £692 followed by monthly payments of £521. Also that interest will be charged from the day of transfer plus the first monthly mortgage payment. 

So looks like i will be paying £692 + £521 (Minus 1 days interest) on the first of December. 

PerfectMess

Edit: Reading the offer it says the payments will be an initial £692 followed by monthly payments of £521. Also that interest will be charged from the day of transfer plus the first monthly mortgage payment. 

So looks like i will be paying £692 + £521 (Minus 1 days interest) on the first of December. 

I would take that to mean an initial payment of £692 in December followed by monthly payments of £521 from January.