First mortgage repayment question

pob100

I am about to exchange contracts as a FTB, and expect to complete in the middle of February. What I'd like to know is: When will my first repayment be, and how much for. We have asked to pay monthly at the beginning of each month, so I'd expect the first payment to be on the 1st March. But will I pay a full month's repayment then, or a pro-rata amount from date of completion to 1st March, or a full month plus a pro-rata amount from date of completion to 1st March? Would definitely help my budgeting if anyone could advise. Thanks.

innovate

All depends on the T&Cs of your mortgage, you should ask your lender.

In any case, they will charge you from the minute they give you the money, regardless of the repayment schedule.

annie-c

When I took out my first mortgage mid-month my first payment was about 6 weeks later for that full 6-weeks payment. I was told in advance though so I could budget accordingly.

Simon_gloster

Agreed on the above posts. The initial mortgage payment will commence from the day the lender "lends" you the money. If it's 12th Feb, your first payment will be 16 days interest plus all of March. Again dependant on your T&C's, but in this example,the first payment would be 1st March for one and a half months interest. If you mortgage interest is calculated on a daily rate, you can more or less work this out to the pound.

Hope this helped.

Si

pob100

Thanks for the replies.
Ok, I know that they will charge me the minute I get the money, question is really about whether you prepay or pay in arears. Simon, you say you agree with annie-c but you reckon my 1st March payment would be for 6 weeks, while if following annie-c's case the first payment wouldn't be till April 1, and it would be a six-week charge.

sarah_elton

Simplest thing is to call your lender and ask when you'll first pay, and how much, as it varies between them.

I complete on 23 Jan, but HSBC have some policy whereby they won't take any money for 28 days regardless of date. My mortgage date is the 1st, so first repayment won't be until 1st March, where they said it'll be my usual repayment (I'm on a fixed rate), plus the 10 or so days interest from 23 Jan - 1 Feb.

jcr16

when we bought our first home, we moved in on the 8th november 2001 and our first mortgage payment went out on the same day. we weren't told about it , to our knowlegde it was going out a month later. but we were too young at the time to question it. we just figured we shall pay our mortgage off 1 month earlier.
so i would make sure your mortage lender confirms in writting to you , your first payment and how much.

HTH