How Important Is It to Complete My Direct Debit Authority Correctly?
A direct debit authority is a permission given by an account holder to a bank, retailer, or other financial institution. The permission allows the institution to automatically take funds regularly. Every account holder signs an agreement that denotes the amount and withdrawal date.
For a mortgage, lenders request setting up the authority during the contract signing process. This provides peace of mind that the repayment will arrive on time every month.
All mortgage repayments fall on the first of the month. It takes the guesswork and stress out of the process.
If you do not set up the authority correctly, it causes a host of issues. First, your repayment will not post to your account on time. This puts your account in arrears. Most lenders give homeowners a grace period of 30 days before officially denoting an account as arrears. Nonetheless, it’s best to avoid this situation altogether.
Setting up the direct debit correctly means that the lender automatically withdraws the funds. Then their system can post the funds to the account automatically too.
Mortgage House loan specialists walk homeowners through the process. They ensure that the information inputted is correct. If you need to change the information, simply contact our team or change it online.
Direct Debit Authority Conclusion
For big-ticket items that require recurring repayments, it’s important to set up the direct debit authority correctly. It gives the lender peace of mind. Once the repayment recurs automatically, the homeowner simply needs to ensure that the money is in the account. It’s possible to set up automatic repayments for the Mortgage House car loan too.