Best day to start a mortgage?

Ivrytwr3

Hi all,

With regards to interest payments etc, is there a best day for your mortgage to start to minimise the payments? (make sense or clear as mud?!)

Thrugelmir

1st of the month.

Ivrytwr3

hee hee, simple as that? Thanks very much, but any chance of explaining why?

GMS

What day do you get paid?

Why not set up the direct debit for the same day or day after? That way you will never actually 'see' the money to miss it.

getmore4less

The costs of trying to perfect the mortgage date will outway the savings for most people.

The date that is best is the one that allows you to borrow the least amount of money on any mortgage with daily interest.

Ivrytwr3

getmore4less wrote: »

The costs of trying to perfect the mortgage date will outway the savings for most people.

The date that is best is the one that allows you to borrow the least amount of money on any mortgage with daily interest.

But how do i know which day is best?

GMS

Based on a 25 year term the savings on a few days interest will be negligible, plus anything you save upfront could in theory be save at the back end. If you take out a 25 year term and pay a partial month in addition to the first payment then you will have a partial month rather than a full month at the end.

If you really want to buy a house and take on a huge responsibility of a mortgage then you will complete to suit your needs

If you are really worried about a few quid up front then maybe you are not ready for a huge financial commitment.

You are buying a house, not a £2.50 a week deferred interest nothing to pay until next March pair of trainers.

It is not a catalogue. Interset is calculated daily, monthly or annually. Any way it cannot cost you more over the term.

Thrugelmir

Majority of lenders calculate interest daily and charge interest monthly (last day of period).

Normal practice is for mortgage payments to be due on the first of the month payable by direct debit or standing order.

To reduce interest charges make overpayments as early as possible. As as my sig says interest compounds.

getmore4less

GMS wrote: »

What day do you get paid?

Why not set up the direct debit for the same day or day after? That way you will never actually 'see' the money to miss it.

That is far to risky if you don't have buffer funds, one late payment from the employer and the hastle is far too much even if the employer covers costs.

GMS

What if the job is lost? Same risks.

Who said no buffer funds?

Ivrytwr3

GMS wrote: »

If you are really worried about a few quid up front then maybe you are not ready for a huge financial commitment.

You are buying a house, not a £2.50 a week deferred interest nothing to pay until next March pair of trainers.

It is not a catalogue. Interset is calculated daily, monthly or annually. Any way it cannot cost you more over the term.

Easy tiger. I know EXACTLY what this means commitment wise. However, if by starting my mortgage on a particular day means i save ANY amount, then what am i hurting by making a mortgage suit ME?

Is it a full moon tonight are there some very tetchy people on the forums!