Will I Be Charged a Missed Payment Fee if I Nominate the Wrong Direct Debit Account?

Setting up direct debit repayments is an excellent way to ensure your mortgage and other recurring bills are paid on time. However, if you nominate the wrong direct debit account when setting up online repayments, your lender will not be able to take any money from your debit account, resulting in a missed repayment fee. with Setting up direct debit repayments is an excellent way to ensure your mortgage and other recurring bills are paid on time. It is the borrower’s responsibility to provide the correct transactional bank account details. However, if you nominate the wrong direct debit account when setting up online repayments, your lender will not be able to take any money from your debit account, resulting in a missed repayment fee.

What is a Direct Debit Account?

Your lender may require you to have a direct debit account in order to secure a loan. Lenders prefer these types of accounts because they cost less money for them to process than other online payment methods or cheques. However, they are also beneficial to you because they make it easier for you to manage your repayments. Direct debits are great if you are forgetful, busy, or don’t manage your money well. It is important to note, however, that if there is not enough money in your account or you provide the wrong account information on your home loan application, you may have to pay late fees. Experts recommend making sure at least part of your salary is deposited directly into this account every month to ensure there is enough money for all your loan repayments.

How to Avoid Missed Payment Fees

In addition to making sure you have enough money in your direct debit account, you also will want to check both your account and mortgage statements regularly to ensure your lender is receiving your repayments. If your repayments are not being processed and are not being received by your lender, you risk defaulting on your mortgage.

If you have any questions about direct debit accounts or direct mortgage repayments, the experts at Mortgage House can help.

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