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Original poster

Bad idea to have mortgage direct debit on the 28th?

28 replies

remenhambridge · 15/06/2022 14:52

Just wanted to check this out with wise MNers.

I have been told it's not a good idea to have your mortgage direct debit on the 28th. If there is a problem with the bank and the money isn't taken, then it will look as if you have missed that month's payment entirely, and face associated impact on your credit score.

Is this something which is commonly known?!

OP posts:
Dizzywizz · 15/06/2022 14:53

Huh? Never heard of that

Hoppinggreen · 15/06/2022 14:54

Never heard of that either.

DenholmElliot1 · 15/06/2022 14:55

I've never heard that either, but if you're worried it might happen why not just choose another date, one that gives you time to make a payment before month end?

Original poster
remenhambridge · 15/06/2022 14:56

The advice given was to set the mortgage DD for the start of the month. However, seeing as I am paid towards the end of the month (26th), then having a DD on the 1st is not going to help me, as I will forever be chasing my tail in terms of the mortgage! As in, I would much rather use July's salary to pay July's mortgage, rather than have to use June's salary to pay July's mortgage.

OP posts:
stuntbubbles · 15/06/2022 14:58

Not sure I understand why “get paid on the 26th June, mortgage comes out on 1 July” is worse than “get paid on 26th June, mortgage comes out on 28th June”. You’re paying the bill within a week of getting paid either way.

never heard of a DD on the 28th being a problem.

Paydaypatsy · 15/06/2022 15:00

At most 1st is only 5 days after 26th. Can’t you just remember that mortgage is yet to come out? I don’t understand why you’d be chasing your tail?

It’s always a good idea to have a few days between payday and your mortgage payment in case of a payroll error.

Yodaisawally · 15/06/2022 15:02

Eh? My DD goes on the 28th as I get paid on the 27th but if the 27th falls before a weekend / bank holiday I get paid early. Standard practice as far as I'm aware.

Beaucoup · 15/06/2022 15:03

I’m afraid nothing about your posts are comprehensible to me. Bank holiday is preventing mortgage payments going out happen all the time as it happened with us last month because of the Jubilee weekend and it’s not a missed payment so I’m not sure what that worries about. But more importantly I don’t understand the question about chasing your tail because in the first option you pay the mortgage two days after you get paid and in the second option you pay the mortgage a week after you get paid so what’s the issue?

Original poster
remenhambridge · 15/06/2022 15:16

stuntbubbles · 15/06/2022 14:58

Not sure I understand why “get paid on the 26th June, mortgage comes out on 1 July” is worse than “get paid on 26th June, mortgage comes out on 28th June”. You’re paying the bill within a week of getting paid either way.

never heard of a DD on the 28th being a problem.

Because the 1st July payment would be for July's mortgage, not June's.

OP posts:
stuntbubbles · 15/06/2022 15:17

…so?

Original poster
remenhambridge · 15/06/2022 15:18

I’m afraid nothing about your posts are comprehensible to me.

I aim to please! Grin

Bank holiday is preventing mortgage payments going out happen all the time as it happened with us last month because of the Jubilee weekend and it’s not a missed payment so I’m not sure what that worries about.

Well this is exactly what I thought! But it is a mortgage broker who has advised not to have it on the 28th, for reasons as set out in the OP.

But more importantly I don’t understand the question about chasing your tail because in the first option you pay the mortgage two days after you get paid and in the second option you pay the mortgage a week after you get paid so what’s the issue?

I would be perfectly happy with a direct debit date of 1st July for June's owed payment, but I didn't think you could do it like that. I thought June's payment would have to be paid by, well, the end of June!

OP posts:
DrFoxtrot · 15/06/2022 15:18

But June's money is mainly for use in July, is it not? Confused

anybloodyname · 15/06/2022 15:20

You are over thinking

I like to have all my DD's come out between the 1st and 6th of month so I know what I have left but I'd not get hung up on if that was this month or last months payment

Hope you not paying this person providing you with shit information

SusieSimpleman · 15/06/2022 15:21

No, it's completely untrue.

Credit reference agencies would be totally unaffected. If your mortgage (or any other) DD is set for the 28th of June but a bank holiday meant it was claimed 1st July, you'd still have a green 'paid on time' mark for June.

Whoever told you that is talking bollocks.

Beaucoup · 15/06/2022 15:22

The vast majority of people I know are paid at the end of the month. 26,28,31 etc.

this payment is then used to pay for the following months expenses: pay your mortgage, buy your food, put fuel in your car.

then the end of month approaches: these people (much like me!) get paid again.

this payment is then used to pay for the following months expenses: pay your mortgage, buy dog food, pay the swim club for your child.

what about this feels difficult to comprehend?!

SusieSimpleman · 15/06/2022 15:23

Jesus. If a mortgage broker told you that op, for fucks sake do not use them. It shows a real lack of understanding of how financial institutions liaise with CRA's and how CRA data is displayed.

I would expect far better knowledge from a mortgage broker. Run away from them, fast.

Tothepoint99 · 15/06/2022 15:27

SusieSimpleman · 15/06/2022 15:23

Jesus. If a mortgage broker told you that op, for fucks sake do not use them. It shows a real lack of understanding of how financial institutions liaise with CRA's and how CRA data is displayed.

I would expect far better knowledge from a mortgage broker. Run away from them, fast.

Agreed! Jeez Louise! OP your mortgage is going to last 25 years or more. This is minutiae of detail that'll have zero impact on your funds.

If you're that bothered, overpay by one month.

PeekAtYou · 15/06/2022 15:27

My direct debits come out within 3 days of payday because bank holidays make me nervous. I've not heard about end of the month being an issue

SusieSimpleman · 15/06/2022 15:29

I would be perfectly happy with a direct debit date of 1st July for June's owed payment, but I didn't think you could do it like that. I thought June's payment would have to be paid by, well, the end of June!

You're over thinking and placing too much of a link between your own pay day and the mortgage due date.

Your mortgage provider doesn't care what your pay date is. They will set one Monthly Contractual Payment due date. A DD will be set to claim the money from your bank on that day or the next working day afterwards.

That's it. How you arrange your own finances to make sure you have enough money in your account on that date each month is irrelevant.

Original poster
remenhambridge · 15/06/2022 15:34

SusieSimpleman · 15/06/2022 15:29

I would be perfectly happy with a direct debit date of 1st July for June's owed payment, but I didn't think you could do it like that. I thought June's payment would have to be paid by, well, the end of June!

You're over thinking and placing too much of a link between your own pay day and the mortgage due date.

Your mortgage provider doesn't care what your pay date is. They will set one Monthly Contractual Payment due date. A DD will be set to claim the money from your bank on that day or the next working day afterwards.

That's it. How you arrange your own finances to make sure you have enough money in your account on that date each month is irrelevant.

Ok, great, thanks.

Can't believe this has come from a broker!

He said that, if the payment wasn't collected on the 28th (say, July), then by the time it was spotted/fixed, it would likely be early into the next month (say, August). And so that would mean having a 'non payment' mark against the account for the month of July.

No wonder I've got confused then if all that is bollocks.

OP posts:
anon2022anon · 15/06/2022 15:34

I would also go for the 1st, as it will give you more flexibility in the future. I used to be paid on the 26th of every month, so mortgage due date was the 28th. When I changed jobs, my new pay day was the 15th or something, but obviously paid in arrears, so if I started work in June, I wouldn't get paid til the 15th of July. I asked if I could change my payment date, but could only change it to a date within the same calendar month, so I had to find June's payment on the 26th, then pay with my next pay in mid july. If my payment date had been the 1st, I'd have paid 1st June with Mays pay, then moved my payment date to the 15th July to coincide with pay.
Obviously extra interest for the extra days would be added.

Thursday37 · 15/06/2022 15:36

Surely everyone that gets paid towards the end of the month uses that to pay the following months bills?!

I get paid on 25th, DH 27th and our DD’s are mostly set to come out on 1st, so payday 25/27 June will pay July’s direct debits. Anything else would just be confusing! I’ve done it like that since my first Saturday job 28 years ago.

July’s mortgage would always be paid with June’s pay.

slowcookerforone · 15/06/2022 15:48

I get paid at the end of the month and my mortgage comes out around the 3rd.

I have 2 employers at present, both do their payroll manually or through a very small and shit payroll company.

It's not unheard of for my wages to be paid a few days late (both jobs) so I have built a bit of slack in the system.

When I was paid by a larger company I didn't have to do this because they were always spot on with their wages.

TinyTear · 15/06/2022 15:54

That is bollocks. and I would never have a payment on the 28th if i could avoid it.

What if you change jobs? my job pays on the last thursday of the month so can be the 25th but also can be the 31st... depends on the calendar...
Having the mortgage on the start of the month means this won't be a problem

HouseofHolbein · 15/06/2022 15:59

I had a problem with my mortgage going out on the 28th but it was every February and I think because I paid by standing order. Was about 25 years ago so can't really remember 🤣🤣

Me and H get paid 4 weekly so pay date varies so we have DD for everything set to go out first of the month.

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