alliance leicester first payment query

seatzie

just changed my mortgage to alliance and leicester, received notification of my first payment, which amazes me

mortgage completed 2 November
normal payment 242
first payment on 2nd december 473!

apparently I am paying 58 days interest for only having had the loan for 30!

with previous mortgage lenders, its usually been a big first payment but not until the end of month 2, I relaise you have to make up the difference between completion, end of first month and when first payment occurrs but this seems ridiculous, anyone any ideas before I ring A&L customer services (who I don't rate at all, already had 3 run ins with them in the last month)
Darren

saver_sam

Perhaps they are making you pay in advance i.e. for December (31 days) and Nov (28 days) - it close to your 58 days

leftieM

The scumbags did that to us too - they said they were collecting payment at the end of the first month and we would pay extra interest. We assumed payment would be lifted at the beginning of the month as that's what we asked them to do. It's just a money making scam as far as I can tell.
We didn't complain. I tried their 'no to 0870' number and they refused to transfer me to the mortgage centre. i just gave up. As soon as the tie-in period ends I'm gone.

MarkyMarkD

It's NOT a money making scam.

If you pay on the 2nd of the month following completion, you are paying in arrears for the first (part) month, and in advance for the majority of the second month. You are NOT getting charged any extra interest - you are just making your contractual monthly payment on the 2nd of the month.

If you want to change the monthly payment date to any other date, that will be fine too - I changed mine from the 2nd to the last day of the month and that's how it is now. Problem solved.

I DID have to make one payment on the 2nd, but that was it - I changed it from the following payment.

OMAR

473 covers 2nd of Nov right through til 1st January

OMAR

which is just less than 2 months ie...just less than double your monthly

seatzie

thanks omar and everyone else, so basically its the payment date is the screw up, effectively I'm paying november and december on 2nd december, so hopefully if I ask them to move the payment to the end of the month e.g. 28th january, that puts me back to paying at the end of the month the interest is for? I'll give that a shot and see, don't want to be paying in advance now do I lol!

now just to sit back and see if the cashback really does materialise in the 10 days stated

thanks again everyone

planetf1

A very old thread, but the same happened to me -- my payment date is 1st of the month.

So my first payment was (is) for nearly 2 months worth after only 3 weeks. What I'm not sure is when my payment gets credited to my account.

If it's immediately applied & interest is calculated faily, then in effect I'll pay less interest in the long run which does benefit me - the net is I have a mortgage for a little less than I'd thought, but nothing to worry about.

But, if the money just sits there and isn't applied to the account until 31st of the month I may as well shift my payment date and take the benefit

Did you get yours sorted?

MarkyMarkD

If you are still talking about A&L, planetf1, it's not daily interest but monthly which is why I changed my payment date to the last day in the month.

You don't save anything by paying on the 1st rather than the last day.