Remortgaging question - what day to start new mortgage from?

Baxter100

Hello,

We are currently in the process of remortgaging - moving from a variable HSBC rate to a fixed Lloyds mortgage.

Our current HSBC mortgage comes out on the 20th of each month.

One aspect I cannot work out and can't seem to get and guidance from the solicitors on - is there a best day of the month to organise starting our new Lloyds mortgage from? In terms of minimising mortgage/interest costs to HSBC? Or does it all work itself out anyhow in terms of redemption payments etc.

Thanks,

dimbo61

As soon as possible.
The day the ERC finishes.
If your paying SVR swop as soon as you can 

Baxter100

There are no ERCs on our existing HSBC mortgage (it's a lifetime fixed tracker).

The question was more would starting the new Lloyds mortgage on the 19th of the next month (and therefore missing the next HSBC payment) save us money, or does it all sort itself out in the wash?

simon_or

Wouldn't it depend on the difference between your HsBC tracker rate and the Lloyds fixed rate?

For example if the tracker rate is currently 2% and the fixed rate is 3.5%, then you want to delay completion for as long as possible to minimise the interest rate paid.

MWT

Baxter100 said:

The question was more would starting the new Lloyds mortgage on the 19th of the next month (and therefore missing the next HSBC payment) save us money, or does it all sort itself out in the wash?

However you do this, the interest and payments due will be calculated on a daily basis so you will not save money by 'missing' a payment.

Baxter100

MWT said:

Baxter100 said:

The question was more would starting the new Lloyds mortgage on the 19th of the next month (and therefore missing the next HSBC payment) save us money, or does it all sort itself out in the wash?

However you do this, the interest and payments due will be calculated on a daily basis so you will not save money by 'missing' a payment.

Ok thanks. I was unsure as I am sure I read/heard somewhere that the repayment is calculated on a daily basis, but the interest charge is taken for the whole of the month ahead.

kingstreet

If you overpay HSBC and the excess isn't deducted from the redemption figure, you will have the difference refunded after completion. You only pay one lender at a time. You can't end up paying both at once.

Baxter100

Great thanks.