when should first mortgage payment start?

mary81

I've had my mortgage offer in the post this weekend as the valuation has taken place and all is ok. It says on it that it assumes the mortgage will start on the 3rd March 2011. I haven't even exchanged contracts yet so the house isn't mine yet and therefore shouldn't be paying anything yet, surely you don't pay your first payment until your completion date ? I'll phone my mortgage advisor tomorrow and ask them but can someone just tell me roughly when you should start paying?
Thanks:D

Lilly11a

I made first mortgage payment approx 10 days after completion- this was a bit higher to cover the extra interest. I then paid the second one on the normal due date of the 1st. Hope that helps

Gorgeous_George

I assume that you have asked for a repayment day of the 3rd. There will also probably be a 'broken month' payment for the period from completion to the 3rd. If you complete after the 3rd of March I would expect your 1st normal payment on 3rd April with a 'broken interest' payment from completion to the 3rd April.

GG

GemBlueTopaz1984

Hi,

I don't think every company is the same. We completed on the 4th of dec 09, they had asked us what date we wanted the payment taken we said 2nd of each month, we made sure we had 2 months payments ready for when they asked for it. We got a letter after completion stating first payment was to be taken on 2nd of january of our normal mortgage payment amount which was a pleasant suprise and meant we had a bit extra for furniture (FTB) that was with Natwest.

Gem

Thrugelmir

Depends on the date of completion. A requirement of the direct debit system is that 10 days notice is given of taking the money.

So if you complete between 1st and around 17th of the month. Expect to pay beginning of following month. Any later and you'll pay at the beginning of the month after.

The first payment will be the amount due from the date of completion through to the end of the month prior to making the payment.

Thereafter except for interest rate changes the amount you'll pay will be consistent,

Gorgeous_George

GemBlueTopaz1984 wrote: »

Hi,

I don't think every company is the same. We completed on the 4th of dec 09, they had asked us what date we wanted the payment taken we said 2nd of each month, we made sure we had 2 months payments ready for when they asked for it. We got a letter after completion stating first payment was to be taken on 2nd of january of our normal mortgage payment amount which was a pleasant suprise and meant we had a bit extra for furniture (FTB) that was with Natwest.

Gem

Why did Natwest have your furniture

GG

GemBlueTopaz1984

Gorgeous_George wrote: »

Why did Natwest have your furniture

GG

:Dwhat can i say they have an excellent decorators, my lounge now looks like my local branch, took some time and effort to get the cashier counter in and i must say the cash machine is convenient but i think i want a bit far hiring someone to sit behind the desk 9-5pm lol.

My mortgage is with Natwest.

Gem

kingstreet

Traditionally, banks always charged in arrears and building societies in advance. Now the lines between the two are blurred, it varies widely and it's probably worth contacting the lender.

On the issue of assumed completion and payment dates in an offer, these are simply indicative and provide an idea of what the payment would be if completion took place on that date.