Moving costs - how much??

spend_thrift

westv wrote: »

You complete on, say. the 15th September. You ask for payments to start on, say, the 28th. Your first payment comes out on the 28th October so therefore your first payment includes the 15th September to the 28th October.

OK, so I may not be paying my first mortgage payment within a month of moving in, but when I do have to pay it, it is likely that I will be paying for more than one month in one go.

So in your example, on 28th October I'd be hit for 6 weeks' worth of mortgage.

pinkteapot

Ask your bank about the first mortgage payment as there seems to be some variation. I remember having a large payment about five years ago on the first place I owned.

But, on the other hand, OH and I completed on our new house on 2nd August. We had chosen to make mortgage payments on the 1st of the month. Our first payment therefore has just gone out (1st September) and was for our normal monthly amount, suggesting it's just paid in arrears.

When I bought my first place (also a FTB leasehold flat) I think I paid about:

• £1k for solicitor (leasehold is more expensive than freehold)
• £500 mortgage booking fee (application fee) - varies by mortgage product
• £400 for survey (Homebuyers Report - don't be cheap and have the Mortgage Valuation survey for £150, but it's probably not worth spending £800 on a Full Buildings report for a flat, unless it's a badly converted house, is >100 years old, or you have any other reasons to doubt the structure)
• Removals - £50 van hire plus Wetherspoons dinner for five friends who helped me (this time with hubby we used a proper removals firm and paid £800)
• Stuff for property - make a list of everything you'll need that you don't currently own - washing machine, fridge/freezer, furniture etc. Budget with the aid of the Argos and Ikea catalogues.
• Have a contingency - it's amazing the number of times you'll move into a place and find the boiler, lights, or something else aren't working. Also, everyone I know who has bought a place saying "It's great - we can move straight in and don't need to do anything." has re-decorated in the first year. Trips to B&Q are somehow alarmingly expensive in the first month or two in any new place.

little_miss_muppet_face

You defo need to pay more on your first months payment, its to do with the interest, our mortgage payment is £533 per month and the first one was £803, that gives you an idea of figures. We got the keys to our property on the 15th of the month and our first mortgage payment came out on the 25th of the following month. Hope that helps a bit.

wodgerdodger

Perhaps an easier way to understand how the first months mortgage payment is calculated is as follows.

Each Lender has their own year end date but most are 31st December. If we assume you completed on the 10th of september the Lender calculates total interest from that date until 31st December; so assuming you borrow 100,000 @5% from 10th September to end december is roughly 111 days i.e £1520.
Completing on 10th september you would make 3 normal monthly payments by 31st december of £416.66 each month ( 100,000 X 5% div 12) there is a difference (shortfall) of £270.02 to be paid with your first monthly payment.

The only way to reduce this first additional payment is to try and arrange your completion at the end of a month.

Hope that clarifies things.