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Direct debit and monthly payments when you remortgage
- Date Published : July 4, 2025
- Date Last Modified : April 17, 2026
When remortgaging from one lender to another, it’s natural to have questions about how your mortgage payments and direct debits will be managed during the transition. This article addresses some of the most commonly asked questions and outlines best practices to ensure a smooth experience.
Your new lender
The straightforward part is setting up payments with your new lender. Your first mortgage payment may differ slightly in amount and date, as it won’t typically cover a full calendar month and it takes time to establish the new direct debit.
We’ve already covered this in detail in our article: First Mortgage Payment Explained
Your current lender
Before completion, your current mortgage lender will issue a redemption statement, which is shared with the solicitor handling your remortgage. Your solicitor will then repay the lender in full on completion day.
Don't cancel your existing direct debit too early
While it might seem logical to cancel the old direct debit, we advise against doing this until you’ve received formal confirmation that your remortgage has completed. Remortgages can face last-minute delays, and cancelling the direct debit too early could result in missed payments or mortgage arrears.
Once your solicitor has confirmed that completion has taken place, you can safely cancel the direct debit with your old lender.
A direct debit might still go through after completion
It’s quite common for remortgages to complete on the first working day of the month, especially when a fixed rate ends on the last day of the previous month. Many borrowers also set up their direct debits to go out around this time.
Because of how the timing works, your current lender may still collect a mortgage payment even after your remortgage has technically completed. This happens because their systems don’t always update in real time.
Don't worry — a refund will be issued if overpayment occurs
If a payment goes out after completion, you’ll be refunded. Either:
- The lender will automatically process the refund within 2–3 weeks, or
- You can call the lender to request a refund sooner — though we recommend waiting at least a week after completion for their systems to update.
In either case, the money is safe, and this is a common and well-understood process.
However, in some cases, the direct debit may not go through at all, particularly when the remortgage completes before the scheduled debit date. In that case, no refund is needed, as no excess payment has been taken.
Here is a quick overview of what to expect before we walk through each point in detail.
Wait a week before requesting a refund
If you contact your old lender within a day or two of completion, their system may not yet reflect the updated status. We recommend waiting at least a full week before contacting them for a refund. This allows time for their records to update and helps avoid confusion.
Protect your property with Land Registry alerts
As part of the remortgage process, your solicitor will update the Land Registry — the official record of property ownership in England and Wales — to reflect the new lender’s charge, replacing the previous lender’s details.
If you haven’t already, this is a good time to register for the free Land Registry Property Alert Service. It monitors any activity on your property and adds an extra layer of protection against fraud — a simple but worthwhile step after any remortgage. You can find out more in our article Register for Free Land Registry Property Alerts
A real example that prompted this blog
While this is a commonly asked question, we were prompted to write this blog following a real client experience that occurred just yesterday.
On 2nd July, a client — Harrison (name changed) — had completed a remortgage from NatWest to Santander. The remortgage finalised on 1st July, but since his direct debit with NatWest was set for the 1st of each month, NatWest still collected the regular mortgage payment on that day.
Concerned, Harrison contacted NatWest on 2nd July to request a refund. Unfortunately, the customer service agent, unaware that the mortgage had already been redeemed, advised him to contact his bank and request a refund through the Direct Debit Guarantee scheme — which he did.
This situation serves as a reminder to wait a few days after completion — ideally a full week — before contacting your previous lender. It also highlights the importance of staying calm. If a payment is taken after completion, the refund is assured, either issued automatically or available on request. A little patience, along with the knowledge that your money will be returned, can help avoid unnecessary stress.
Here to guide you every step of the way
Remortgaging involves many moving parts, but with the right guidance, it can be a smooth and stress-free process. At Nachu Finance, we’re here to support you all the way — from paperwork to payment setup and everything in between. Feel free to get in touch if you’re considering a remortgage or just want to understand your options better.
About the Author
Sekkappan Alagu is the Founder of Nachu Finance Ltd, established in 2006. With an early career in journalism and publishing, he brings clarity and structured thinking to complex financial topics. Through the Nachu Finance Blog and Knowledge Hub, he shares insights drawn from nearly two decades of client advisory experience, helping readers make informed decisions and understand best practices in mortgages, protection and long-term financial planning.
Business Profile
Nachu Finance Ltd is a directly authorised FCA-regulated firm providing mortgage, insurance and estate planning advice to clients across the UK. The firm takes a holistic approach — considering protection, tax efficiency and long-term planning alongside property finance — maintaining high regulatory standards while keeping advice clear and easy to follow. To learn more about the firm's background and story, visit the About Nachu Finance page.
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