Lost £400 on completion date - remortgage

[bananasinabowl]

Hello all,

I need some advice. We completed a remortgage on 1st March. We used the solicitors recommended by the remortgage bank. Everything was going smoothly.

however we got told a direct debit was not set up on time therefore we had to end up paying the variable rate to our old bank for the month of March which is an extra £400.

Who’s at fault here and how do we reclaim it back?

Our new bank are blaming the solicitors, the solicitors are blaming the broker we used.

£400 is a lot of money to lose and we did everything right on our part so I can’t understand how we ended up out of pocket?!!!

You are responsible for setting up the DD. No one else

If it is a direct debit rather than a standing order, it is for the company/bank you are paying to collect the payment. Therefore, this is their issue. Unless they are saying they did not get your direct debit form in time, in which case the responsibility is likely to be yours.

Depends who was responsible for setting up the direct debit and who submitted it too late.That would be my take on things.

Not been my responsibility before? I gave the account details to the broker and solicitor for the direct debit

No one asked for my account details except for the broker and solicitor. The direct debit has been set up, it was just not set up in time for the completion date.

It's banks that set up DDs. You're thinking of standing orders which the account holder has to set up themselves.

My mortgage repayment is a standing order. Is that not the norm?

You must have secured one heck of a good remortgage rate if the difference for one month between SVR and the deal rate is £400!

Mines a dd.

No way would the solicitor have been taking your account details to pass on to the bank.

You would have had a DD instruction form issued by the bank that you would have needed to complete

Well we didn’t. Our broker asked us for our direct debit details. It’s been set up, as in I haven’t had to do anything, the payment will be made in April but it was not set up in time for March we were told so had to pay the variable rate. I’ve not had to fill in anything or provide any further details. It seems like everyone is confused as I am about whose fault it is or what’s happened.

As part of the application process you would have given the dd details to your broker who would have added them to the mort application which passed onto the mortgage company to use. I'd start with the broker and ask them to evidence the timeline when they submitted your dd details to the new lender.

We secured a deal 6 months ago. So our monthly payment is around £900. The variable is £1.3K. If we didn’t secure a deal and waited, our fixed rate monthly payment would have been about £1.2K