Moving from FD to HSBC...can I cancel my last payment?

IAMIAM

Next mortgage payment is due 1st June, rate ends 30th June, want to complete a remortgage to HSBC on next available day after 1st July.

Can I cancel my FD 1st July payment and then all my remortgage will be paid in full by HSBC without any need for recalculations etc etc due to 1st July payment.

Rich1976

No because it will show you have defaulted on the mortgage payment if they weren’t able to collect it. 

You need to continue paying as normal until the remortgage has completed.

K_S

IAMIAM said:

Next mortgage payment is due 1st June, rate ends 30th June, want to complete a remortgage to HSBC on next available day after 1st July.

Can I cancel my FD 1st July payment and then all my remortgage will be paid in full by HSBC without any need for recalculations etc etc due to 1st July payment.

@iamiam I wouldn't recommend it.

Worse case scenario, FD automatically reports it as a missed mortgage payment and then you end up having to spend a lot of effort and time trying to get it corrected.

IAMIAM

Rich1976 said:

No because it will show you have defaulted on the mortgage payment if they weren’t able to collect it. 

You need to continue paying as normal until the remortgage has completed.

FD payments are by standing order

simon_or

That's a conundrum. Technically I suppose you're still a First direct borrower on 1 July so would be expected to make the payment. But then by the end of the day you'll have no arrears with First direct so will they (an actual person probably wouldn't but I guess credit reporting happens automatically) still report it? Who knows.

Best ask them, preferably get a written answer (chat, email, secure message) and act accordingly.

user1977

simon_or said:

That's a conundrum. Technically I suppose you're still a First direct borrower on 1 July so would be expected to make the payment. But then by the end of the day you'll have no arrears with First direct so will they (an actual person probably wouldn't but I guess credit reporting happens automatically) still report it? Who knows.

Mortgage redemptions tend not to go directly into the customer's account, and usually take a bit of time to be reconciled, so I'd expect the account to be in arrears from the end of 3 July (the first banking day) until whenever the payment from the solicitors filters through. But I don't know whether it's likely to be immediately reported as a default.

The usual advice is just to maintain normal payments - you should get a refund of any overpayment pretty much immediately.