Clearing mortgage - The process

VNX

Good afternoon all,

I’ve searched the forum and found some useful bits so thank you but one bit I am confused about with regards to clearing my mortgage.

my current mortgage deal ends 1/1/25 and I am intending to clear the balance and pay it off in full.

I spoke to my lender, Halifax and they told me that I can cancel my DD now, in December that I don’t need to make my standard monthly payment on 1/1/25 and I can just clear the balance on that date or after it.

sorry if it’s a daft question but I don’t understand how I am able to not make my normal monthly payment on the first of the month? Surely I would then be defaulting? Even though the term ends 1/1/25 I would then switch to SVR and have to make the normal payments?

thank you for helping me to understand !

la531983

If they have given you a settlement figure for the 1st Jan (I assume you have asked for this?), and you then pay that 1st Jan, there is no issue here.

kingstreet

The redemption figure will assume a final monthly payment on DD/MM/YYYY so that tells you if you need to pay the January instalment or not.

VNX

la531983 said:

If they have given you a settlement figure for the 1st Jan (I assume you have asked for this?), and you then pay that 1st Jan, there is no issue here.

Thank you yes I have asked for and received a settlement figure for 1/1/25 I just (wrongly assumed I would need to make my normal payment then clear what’s left after as I didn’t want to have a missing payment on my file but thank you I think it makes sense now! 

Hoenir

Remember the 1st January is a bank holiday. 

VNX

Hoenir said:

Remember the 1st January is a bank holiday. 

Indeed, if I made the payment on 2/1 I assume this doesn’t change anything? 

HobgoblinBT

VNX said:

Hoenir said:

Remember the 1st January is a bank holiday. 

Indeed, if I made the payment on 2/1 I assume this doesn’t change anything? 

If your settlement date is 1/1/25 and you have a settlement figure for that day, then settling the payment a day later will likely incur an additional day’s interest on the outstanding debt.

VNX

HobgoblinBT said:

VNX said:

Hoenir said:

Remember the 1st January is a bank holiday. 

Indeed, if I made the payment on 2/1 I assume this doesn’t change anything? 

If your settlement date is 1/1/25 and you have a settlement figure for that day, then settling the payment a day later will likely incur an additional day’s interest on the outstanding debt.

Thank you, that’s okay