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Mortgage payment due between exchsnge and completion

(6 Posts)
Laurah1979 Fri 06-Jan-17 22:19:10

We have exchanged on our property today (we are the sellers). Our mortgage payment is due a day before completion and I'm unsure whether this is due to be paid or because we have exchanged we do not have to pay it? Anyone know the answer to this?

CotswoldStrife Fri 06-Jan-17 22:27:25

I think you'd need to check with your mortgage company to be sure, but I suspect you'll have to pay. It's still your property on that day legally (although I know that the buyers have to insure it from exchange - that has always seemed bizarre to me!).

Good luck with the move.

Bellaposy Fri 06-Jan-17 22:57:49

You won't pay your mortgage until you complete. The mortgage lenders don't release the money to your solicitor until the day of (or a couple of days before) completion so there is nothing for you to pay back yet. Where are you getting the date from?

Laurah1979 Fri 06-Jan-17 23:02:14

Bellaposy - We are the sellers of the property not the buyers so pay our monthly mortgage payment on the 9th of the month for the property we are selling. We exchanged today and complete on the 10th so want to know if this means the monthly mortgage payment doesn't need to be paid.

Bellaposy Fri 06-Jan-17 23:05:30

Oh I see, sorry I misunderstood. Then yes, you have to make the payment. The bank will either calculate this into the mortgage redemption statement they give your solicitor or will refund you the difference usually. It depends on the bank so I'd give them a call and double check.

ExplodedCloud Fri 06-Jan-17 23:06:50

Yes I think it does. However the redemption value on your mortgage should reflect that payment and you should benefit from the payment overall.

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