Setting a completion date

worriedfirsttimebuyer

We have received our mortgage offer. It has no mention of the date that the mortgage will be coming out of our account and this has not been discussed.
It is a fee-free FTB mortgage from Halifax, however the first payment is £230 more than the usual payments - I'm not really too sure why, this was never explained either (I know the first payment is usually higher because of admin, this happened when i bought a new car last year, but another 25% of the monthly payment, seems a hell of a lot?)

We have to set a date to aim for for completion at around the end of this month (seller has requested 24th, we'd prefer 31st). We want our monthly payments to come out on the 5th of the month.

I vaguely remember someone telling me a while back not to complete in the second half of the month otherwise you pay two payments within a short space of time? Is this true, as I'm panicking a bit about money now? And how can we resolve this issue? Sorry if this seems confusing, i'm confused myself!

Ian_W

The first payment doesn't have an admin fee, it usually covers more than a month, that's why it's higher. Using your dates - if you complete on 31st your first payment will be on 5th April but it will cover a month plus 6 days. The payment is pro-rata on a daily basis.

Never heard about 2 payments in a short space of time, usually found it works as described above.

BoL and enjoy your new home.

mummytofour

Oooh my morgage offer says something about 2 payments I cant get my head round it to be honest and when I know for sure when we are moving I will check it out. All I know is that my morgage ppl take normal payments on the last day of the month and depending when you complete there is an extra payment due on the 15th ( i dont know the details).

For me this is something to do with paying morgage in advance... what ever happend to paying in arrears eh??