2 mortgage payments same month?

purpleparrotuk

I am due to complete on my remortage on 3rd January 2023. My current fixed rate ends on 31stDecember 2022. I am concerned I will end up paying 2 lots of mortgage to each provider in January, since my current lenders payment comes out the 1st of Month. The new lender has a 15 day grace period so the slight delay in the completion due to the Christmas break will be ok.

 

Will the redemption figure the new lenders solicitors receive  include the payment on 1st January so they will withdraw it or will the last payment be on the 1st December?

Also will the redemption statement also have Early repayment charges because at the time they request it I will still have a few days left until the end of the year?  Obviously I shouldn’t pay these. 

kingstreet

The redemption statement will show the assumed last payment date. So close to the next payment, I'd expect it to be the 1 December payment. If the Jan payment does go out, it will be refunded in the two following weeks. You can cancel the DDM if you wish to avoid this, but be prepared to call and make a card payment if completion appears to be delayed.

The ERC will be shown and the solicitor notified to deduct it if the completion date is after 31/12/2022.

kingstreet

Read this;-

https://forums.moneysavingexpert.com/discussion/6409009/erroneously-charged-via-direct-debit-by-old-mortgage-provider-after-remortgage#latest

as it's on the front page of this forum.

user1977

purpleparrotuk said:

Also will the redemption statement also have Early repayment charges because at the time they request it I will still have a few days left until the end of the year?  Obviously I shouldn’t pay these. 

The statement will be for repayment on the anticipated completion date, so if that's after the end of the current product it shouldn't have the ERC.

Whether or not the statement assumes you've cancelled your direct debit will usually be stated on the statement.

penners324

The payment to the old provider will still go out, unless the dd is cancelled, and be refunded within 2 weeks

purpleparrotuk

Thanks for the replies. I’ve had my final redemption statement and the ERC aren’t on there so that’s good. Also I don’t need to make the payment on 1st January because it’s doesn’t form part of the redemption. They recommend not cancelling the direct debit in case of delays but I’m going to cancel and if something goes wrong to delay the completion I will just pay what I owe over the phone. 

I notice the daily interest was £8 at my old fixed rate but on the current rate if I wasn’t switching its nearly £30 a day! Bit of a difference.