Repaying interest only mortgage after monthly DD already taken

Pine

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

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

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.

Pine

Thank you both. 

Hoenir

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.