Mortgage Help

SarahJ

Hi all,

my mortgage repayment came out today, and I didn't know it was going to, so there wasn't enough money in the account. Its now in a minus number, and I wont have the money to pay it until Friday, can someone tell me what happens in this instance?

EL_Loco

the fact you're in a minus number would suggest that you've an overdraft in place. The payment has been made for your mortgage though.

interest will be charged on the amount you've over drawn in line with the terms of your overdraft agreement with the bank. The interest will be charged as long as you're over drawn.

Ring your bank if you're worried.

Saruman

And since your mortgage comes out on the same day every month, perhaps set a reminder on your phone for a few days in advance so you can make sure to have enough money.

Don't worry though, as the other poster said, the mortgage has been paid but expect a charge and interest.

Jet Black

From your post im guessing you dont have an overdraft.
One of two things is going to happen in this case

Your bank will allow the money to come out. But will charge you interest and a fee for this.

Or the money will come back to your account. You will then be charged a returned dd fee.

Ring your bank asap. Your going to be charged whatever happens now. But its best if the first option happen's.

When you ring explain the situation and if you wont have the money til friday the cheapest option would be arranging a temporary over draft.


This is all assuming you dont have an over draft in the first place.

jeckle

The OP doesn’t mention that they have an overdraft arrangement with their bank, & if they did they probably wouldn’t be posting IMO.

Sometimes a direct debit can show up on a person’s bank account as being paid, simply because it has been presented. If there is no overdraft in place the bank can reverse the transaction & return it unpaid to the originator.

In situations like this the bank would usually wait a day or two before returning it unpaid, so as the account holder can lodge sufficient funds to the account. They may also take a look at the account & might decide to pay it anyway, taking into account how the account has been operating etc.

Usually, if a direct debit is returned to an originator, they will represent it automatically at a later date.

The OP could contact their bank & explain that the funds will not be in the account until Friday & request that on this occasion that they pay it.

The possibility is that they might do so. If they don’t agree to the OP could contact their mortgage provider & tell them that there was a mix up with their bank account & ask them to represent the direct debit. It will take a few days for it to show up as being returned on their system, so it wouldn't be represented until after Friday.

SarahJ

thank you all for your responses, I've only just started paying the mortgage this year, so still trying to get to grips with my finances. I rang the bank, the guy was quite helpful, and what is a big deal to me obviously isn't to them (they probably hear this eveyday). He said there will be a second attempt to take the money out after 10 days, so I should be fine by Friday

kaiser sauze

SarahJ wrote: »

thank you all for your responses, I've only just started paying the mortgage this year, so still trying to get to grips with my finances. I rang the bank, the guy was quite helpful, and what is a big deal to me obviously isn't to them (they probably hear this eveyday). He said there will be a second attempt to take the money out after 10 days, so I should be fine by Friday

...however, there will be a charge for you not having the money in the account in the first place.