will my mortgage start the day i complete?

mrsmasterplan

or will it be on a set date?

mrsmasterplan

i mean the monthly payment...

hillcats

Your first payment could be around about a month and half from completion.

getmore4less

You will need to check with the lender when they want first payment and how big it will be.

The money will be drawn down before completion and interest wll start getting charged.

It is common for your first payment to be bigger than the "normal" one.

opinions4u

mrsmasterplan wrote: »

or will it be on a set date?

It varies from lender to lender. Ask the person who arranged the mortgage for you.

Typically you will have to pay interest for the remaining days of the month in which you complete plus a full monthly payment shortly after completion.

Some lenders will then let you choose the day of the month that future payments are collected. But some don't.

dimbo61

Be prepared it will be for one months interest plus very small capital repayment PLUS the extra days interest !
So if you move in on 1-4-2010 and dont pay mortgage until 22-5-2010 you will pay one month plus 21 days interest.

_Andy_

mrsmasterplan wrote: »

or will it be on a set date?

Have you asked the lender?

mrsmasterplan

ooohmylord i wasnt ready for that!!
Best get onto Natwest!

WTTM

dimbo61 wrote: »

Be prepared it will be for one months interest plus very small capital repayment PLUS the extra days interest !
So if you move in on 1-4-2010 and dont pay mortgage until 22-5-2010 you will pay one month plus 21 days interest.

Hit thanks in error - your post is pish / crap.

I made my first payment 6 weeks after moving in AND it was a standard payment.


MOMENT

highdigger

We are also due to complete soon, and phoned the lender to check out when/how much the first payment would be, and they advised they couldn't tell me until it was completed....not very helpful and quite odd I thought - so just to warn they might not be able to help tomorrow, but hopefully they will!

KarenBB

WTTM wrote: »

Hit thanks in error - your post is pish / crap.

I made my first payment 6 weeks after moving in AND it was a standard payment.


MOMENT

THis may vary from lender to lender but OH has mortgage with Nationwide and they calculate the 1st payment as explained by dimbo61 so I wouldn't say their post is ****

The following is a quote from nationwide website (I know where to find info on their website) and it backs up dimbos post

"Your first payment
When working out your first payment we calculate the interest on a daily basis from the day we release the funds and this is added to the following months' mortgage payment.
The first payment is generally taken the month after completion near or on the date specified on your direct debit form. For example; if you complete on 25 March, the first payment will be debited from your bank account in April, on or near the date you specified on your direct debit form. The payment will include interest incurred from 25 - 31 March and your revised monthly mortgage payment."

Natwest may or maynot work the same. Even if the DD hasn't been set yet they should be able to give you an idea how much your 1st payment will be. - Hope it's not too much more than you were expecting