Can I cancel my old mortgage DD?

pamelab21

Hi all

We are changing from a Halifax to a First Direct mortgage at the start of next month.
We are tied into Halifax until 1/04/08 and our solicitor wants to see us next week to sign docs etc (we are in Scotland) and they say that we can have it all switched to First Direct on 02/04/08.
Our next pymt to the Halifax is due on 05/04/08, prob take it on 07/04/08 due to that date landing on a weekend.
My question is, am I entitled to cancel that DD now?
Just got a letter from the Halifax saying that the pymt is going to increase by 150.00 due to us coming off the fixed rate we were on. Can't afford to have Halifax try and take a pymt and have to pay First Direct also!

Hope all that makes sense!

dunstonh

My question is, am I entitled to cancel that DD now?

Does the settlement figure include that 5th Apil payment or not? Sometimes when the dates are close they will take that payment into account.

InMyDreams

pamelab21 wrote: »

Can't afford to have Halifax try and take a pymt and have to pay First Direct also!

Hope all that makes sense!

I'm in a very similar position, except my payment is due two days before my current deal ends.

First of all, if your deal ends on the 1st and your payment is due on the 5th, I can't imagine that you will be hit with the whole £150 extra in the first month as you will only have been on the higher rate (if you had stayed) for 4 days by then and I'm sure you don't pay your interest in advance.

Secondly, although my payment will indeed be due (unlike yours) it will get paid twice because it won't have come of the redemption figure I've been told, so will be paid again by FD when they redeem the mortgage. My current lender has said that once the payment has definitely cleared I will be refunded, but this will take about 2 weeks.

Thirdly, I'm assuming that I will get my refund before I have to make my first payment to FD.

If I was you, I would a) ask FD when your first payment will be due and b) ask your current lender what will happen to the excess money that will be taken. What I would NOT do would be to cancel any mortgage payment. Whatever headache paying too much and having to get it refunded might cause, I'm worried that having mortgage arrears to your file would be worse, even if they are erroneous.

pamelab21

dunstonh wrote: »

Does the settlement figure include that 5th Apil payment or not? Sometimes when the dates are close they will take that payment into account.

Whenever they give a settlement figure they do not take into account the next payment due, it is always just up to the day that you call, if that makes sense.

dunstonh

pamelab21 wrote: »

Whenever they give a settlement figure they do not take into account the next payment due, it is always just up to the day that you call, if that makes sense.

If that is the case with the formal settlement figure given to the solicitor then you are fine cancelling it.