# What happens if i cancel my Mortgage Direct Debit?



## dolphin (27 Apr 2011)

To cut a long story short. 

The business i am involved in is going to go into liquidation next week unfortunately, it was a very successful business before the recession that once had 40 staff and its going to be heartbreaking telling long time employees.

I have a whopper of a mortgage that is paid on the first of every month with payment breaks during July and August hence more during the 10 other months. 

I was on interest only from Feb 10 to Jan 11. 
My Salary is 30% less than what it was when i got the mortgage
All my savings are gone due to taking paycuts etc

I have enough to pay May and all my bills in May but if i do that i will have nothing left for bills and living in June. If i cancel the mortgage direct debit now i will be able to pay bills throughout the summer and keep the family fed until i get another position or another idea of mine takes off before September

Question is if i cancel the direct debit can they still drawdown the money from my account. I know if i contact them tomorrow they will tell me it is too late to amend and i will have to fill out forms etc.


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## Greta (28 Apr 2011)

If you cancel direct debit, the mortgage bank won't be able to draw down the money. Direct debits are usually cancelled overnight, so don't delay if that's what you want to do.


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## dolphin (28 Apr 2011)

Thanks for the reply Greta, the mortgage is with the same bank as the account but i presume that from what your saying that they are seperate entities? i.e current account banking and mortgage bank? 

Do you know what the process will then be with arrears in my situation? Will they contact me by phone or letter? A business team within the bank seem to manage my affairs, when i contacted the mortgage department before i was told i had to contact the business team who overlook the company i work for affairs. I once got a call because one of my personal accounts was overdrawn €15 !


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## Ann1 (28 Apr 2011)

dolphin said:


> Thanks for the reply Greta, the mortgage is with the same bank as the account but i presume that from what your saying that they are seperate entities? i.e current account banking and mortgage bank?
> 
> Do you know what the process will then be with arrears in my situation? Will they contact me by phone or letter? A business team within the bank seem to manage my affairs, when i contacted the mortgage department before i was told i had to contact the business team who overlook the company i work for affairs. I once got a call because one of my personal accounts was overdrawn €15 !


Hi dolphin....If you attempt to cancel a direct debit for your mortgage with the same bank...it will be flagged on a daily report. I would withdraw any cash you want to keep.... straight away. Put it aside for your daily living expenses or just to give yourself time to think. Then go to your bank and make arrangements regarding your mortgage.


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## dolphin (28 Apr 2011)

Hi ANN1

Thanks for the advice, no point it sitting there in full view in my account.Thats very true, i will do that - take the cash out. I don't want to screw the bank but at the same time i don't want my family going hungry. I have experienced it in the past before and its really painful when you don't have a bean. I do intend to catch up on payments and will work with the bank but can't be left out high and dry for the next 2 months.


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## Ann1 (28 Apr 2011)

dolphin said:


> Hi ANN1
> 
> Thanks for the advice, no point it sitting there in full view in my account.Thats very true, i will do that - take the cash out. I don't want to screw the bank but at the same time i don't want my family going hungry. I have experienced it in the past before and its really painful when you don't have a bean. I do intend to catch up on payments and will work with the bank but can't be left out high and dry for the next 2 months.



Yes Dolphin......I don't know when your mortgage is due but we have a long weekend coming up and if it's due 1st of the month they may run the tape for direct debits before the weekend....so withdraw as soon as you can. You can then talk to the bank about a break in your payments or whatever you think best. You are wise to make the best arrangements for your family....they come first.


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## Bronte (28 Apr 2011)

If you're too smart with the bank it may not help you in negotiations with them on the loan.  You should approach your branch manager and come to an arrangment on a moratorium on mortgage payments.  

If you decide not to do that now maybe the time to set up another account in another bank as it's getting very difficult to open up accounts apparently once you get into difficulties.  

Also recommend that you do the money makeover thread.


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## netz (29 Apr 2011)

Bronte said:


> .
> 
> Also recommend that you do the money makeover thread.



Hi Bronte, Ive been looking for this thread for about a month, and can never seem to actually get to it, I just seem to get linked to other pages!!! Any chance you would post the direct link up please?? - Much appreciated, Netz!


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## PaddyW (29 Apr 2011)

http://www.askaboutmoney.com/forumdisplay.php?f=62  that's it there

This is the template to fill out :

Age: 
Spouse’s/Partner's age: 

Annual gross income from employment or profession: 
Annual gross income of spouse:

Type of employment: e.g. Civil Servant, self-employed 

In general are you:
(a) spending more than you earn, or
(b) saving?

Rough estimate of value of home
Amount outstanding on your mortgage: 
*What interest rate are you paying? *

Other borrowings – car loans/personal loans etc

Do you pay off your full credit card balance each month? 
If not, what is the balance on your credit card? 

Savings and investments:

Do you have a pension scheme? 

Do you own any investment or other property? 

Ages of children: 

Life insurance: 


*What specific question do you have or what issues are of concern to you? *


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