FTB-Mortgage payment start date

chikoo77

After completion can i request the mortgage lender to start my mortgage payments after a month or two ? i.e if i complete in september, can i request them to start my first monthly mortgage payment from november ? Do they charge anything for this ? Thanks

lightspeed

I think that this will be highly unlikely. If you complete in Sept your first payment will be in Oct, approx 1 calendar month after the completion date.

Normally, the earlier in the month that you complete, the higher the first mortgage payment. This is because you pay for the remainder of the first month and all of the following month (basically you are always paying 1 month in advance).

If there is a problem with making this first payment, i suggest you contact the lender asap.

MarkyMarkD

Lightspeed

You are NOT always paying one month in advance. It depends on your payment date.

If your payment date is the last day in the month, your initial payment (with most lenders) will be one full month plus the days in the month of completion. And at the point you make that payment, you are exactly nought days in advance.

Some lenders insist that the first monthly payment is on the first of the month, in which case you WILL be a full month in advance as you suggest. But you can normally change the payment date following the first payment (if not earlier) meaning you don't pay for one day less than two months, and then you are paying monthly in arrears.

MortgageMamma

Why don't you just insist on completing the last day of a month? or is that not possible due to chain?

MarkyMarkD

Not sure how that would help, MM.

I suppose that if you completed on (say) 31 July, your first payment would probably be on 1 September, but that would still be in advance and it would be 2 month's payments (plus 1 day) so quite a huge amount of money for most people.

MortgageMamma

ON some mortgage application forms now you can actually specify the day of the month you want your premiums collected, so it is possible to manipulate it this way, but it is normal for a first mortgage payment to be high, which is something I always advise my clients to consider when planning their budget