Should I cancel direct debit of existing mortgage? New deal about to start on the 1st

keeno

Hi all

My remortgage is about to kick in on the 1st of July, im currently with Nationwide and moving to Halifax. I plan to complete on the 1st, am I right to assume that my solicitor will pay off nationwide bebore the 1st and they will not take my usual payment out? Should I just cancel the direct debit to be sure?

nathanhill69

keeno wrote: »

Hi all

My remortgage is about to kick in on the 1st of July, im currently with Nationwide and moving to Halifax. I plan to complete on the 1st, am I right to assume that my solicitor will pay off nationwide bebore the 1st and they will not take my usual payment out? Should I just cancel the direct debit to be sure?

I was in the same situation last month and I cancelled the Direct Debit. If there is any delay in your re-mortgage going through you could just make the monthly payment at your local branch. It's best to give Nationwide a call and maybe get them to send you a copy of the redemption statement supplied to your re-mortgager, then you'll know where you stand.

Cazza

When does your existing payment go out?

lisyloo

am I right to assume that my solicitor will pay off nationwide bebore the 1st

No they won't do it in advance.
They will do it on the same day.

Nationwide will already have claimed your DD (they send instructions about 5 days in advance).

Should I just cancel the direct debit to be sure?

I would if I were you as it will be redeemed on 1st.

If the payment goes out you might have to wait several weeks for a refund cheque.

SpongeBob_2

I will be in the same position with my last (intended) payment being on the 5th August, my new mortgage should start on the 1st Sep.

Can i cancel my DD after the 5th August and IF there are any delays can i just make my normal payment on the 5th Sep via credit card etc?

Bob

minimike2

No no no no no.

I see people do this all the time and it can cause bother.

If the payment goes out and the mortgage has been redeemed it will be returned to you, usually within 14 days.

If the payment is not made, it can cause weeks of problems as the lenders systems will automatically register a late mortgage payment and you may get demand letters etc. Its a chew on to sort it out when that happens.

nathanhill69

minimike2 wrote: »

No no no no no.

I see people do this all the time and it can cause bother.

If the payment goes out and the mortgage has been redeemed it will be returned to you, usually within 14 days.

If the payment is not made, it can cause weeks of problems as the lenders systems will automatically register a late mortgage payment and you may get demand letters etc. Its a chew on to sort it out when that happens.

Then it must be dependent on your mortgage provider, my outgoing provider actually recommended I cancel the direct debit to them and also said if the mortgage was not redeemed then just to make the mortage payment manually (albeit without delay) and it wouldn't show up as a late payment.

keeno

Just an update for you all.

I contacted Nationwide today and was advised to cancel the direct debit. They said that even if there was a problem and the remortgage slipped that Icould pay be card if needs be, I was also assured that it would not effect my credit score.