Repaying interest only mortgage after monthly DD already taken

We are in the process of selling our house which has an interest only mortgage with Barclays at approx. £600 per month. Our next DD is due 1st December, and I believe this covers December, rather than interest owed for the month before. We are hoping to complete on the house sale before this, but as is common, everything seems to be taking forever. 

If we don't complete until after our DD is taken, do we get this payment refunded when the mortgage is cleared (minus the interest for however many days into December it is)? The Barclays website says they repay any money overpaid, but it doesn't specifically say whether this scenario would be considered an overpayment, or if it's just bad luck on our part. 

Many thanks! 


  • MWT
    MWT Posts: 9,142
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    edited 9 November 2023 at 11:19AM
    There is no luck involved, the interest will be calculated up to the day the mortgage is cleared and any overpayment, however it occurred, will be refunded to you soon after completion.
    It is very common to be in this position and it is a routine calculation for the lender.
  • kingstreet
    kingstreet Posts: 38,616
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    Your solicitor will obtain a redemption statement which quotes the date of the last payment so you will know if your redemption figure will exclude the December payment. If it does and the debit goes through, you'll have the payment refunded.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Pine
    Pine Posts: 22
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    Thank you both. 
  • Hoenir
    Hoenir Posts: 1,300
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    Pine said:
    Our next DD is due 1st December, and I believe this covers December, rather than interest owed for the month before. 
    Interest owed is calculated daily and paid monthly in arrears. The direct debit will cover Novembers interest charges. 
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