1st Mortgage payment

Daisy78

Just wondered if anyone could help. We are due to complete/exchange/move on Fri 27th Nov. When we went to sort out the mortgage we decided that the payments would come out by DD on the 1st of each month.

So my question is will our 1st payment be 1st Dec or 1st Jan and if it is the 1st of Jan will it be a double payment?

Thank you in advance.

liverpoolcarl

I have just asked the same question this morning.

My mortgage is with the Halifax and I am due to complete on Mon 30th Nov. I also opted for the 1st of each month as my payment date.

When I called the Halifax this morning they told me they will be taking one month’s mortgage payment plus initial interest which in my case was £50.00 on 14th Dec and then the normal monthly payment would start from 1st Jan onwards.

Best to give your bank a call and confirm how they will work it.

Daisy78

Thanks for that, I'll assume mine would be the same then as I'm with the Halifax too.

_Andy_

Daisy78 wrote: »

Just wondered if anyone could help. We are due to complete/exchange/move on Fri 27th Nov. When we went to sort out the mortgage we decided that the payments would come out by DD on the 1st of each month.

So my question is will our 1st payment be 1st Dec or 1st Jan and if it is the 1st of Jan will it be a double payment?

Thank you in advance.

Have you rung the mortgage company to ask?

DJ_Mike

Usually one full calendar month will be allowed before your first mortgage payment goes out - this is most likely because of the way their systems work out your monthly payments spread over your 20/25/30 year term.

They then simply add on the interest for the part-month that you had when you first took out your mortgage.

Nicnol

We completed on the 30th October and have just had our mortgage statement come through from Halifax an they want to take £1012 (normal monthly payment is £914) on 12th November.

If this is the case as above we will also pay £914 on 1st December so it would seem that we are paying twice!?

Person_one

We completed on October 30th and our first mortgage payment will be the 1st December and will be a double payment, as well as the application fee so is pretty dauntingly huge! It'll be back to a normal one on 1st January.

I imagine you'll pay on the 1st January but it may depend on who your mortgage is with. Ours is the co-op.

Nicnol

I can't understand how you would have to pay double?? Surely mortgage payments are in arrears with any "initial interest"? I can't understand why you would have to pay double!

I have just spoken with Halifax and they have said we pay 14 days after completion being any initial interest plus normal monthly payment and then first "normal" payment on 1st December (our elected date) so effectively we are paying November's mortgage twice and will be in a month in advance!

Person_one

I was told its a double because its a month in arrears (November) and a month in advance (December) and from then on it will always be in advance. So the payment on the 1st Jan will be to cover the whole of the month of Jan and so on.

I presume with yours they are taking the money for the day of completion to the 1st Dec at an arbritrary point in the first month rather than waiting and lumping it in together. I'm not sure why those two days mean nearly £100 though!

ohmochraich

my exchange completed on 30th jan and I had opted for payments on the first of the month - a payment for just under double payment amount came out on the 9th feb with the next normal payment coming out in march.

I was expecting to skip payment in feb and pay double in march but thats not how it worked out.