Why is initial payment for mortgage higher??

ljuba

Does anybody know way is the first (initial) payment for mortgage (in my case interest only) significahtly higher than subsequent payments???

Heth_2

I think, for what I have understood, that the first payment will be the first monthly payment plus the payment for the days between when you completed and the day payment is taken. Does that make sense?
We are completing tomorrow though and haven't been told how much our first one will be yet.

Nick_C_4

Possibly because the money had to be released around 10 days in advance of your completion date in order to be transferred to your solicitor and then on to the vendor. You have to pay interest on the money for that time, and then start your monthly payments.

regularsaver1

this is often called initial interest