First payment

Thrugelmir

smcqis wrote: »

So lets say in theory I complete this week, can I have my repayments come on 1st of every month and hence save interest mounting up in first payment or does there have to be a minimum amout of time pass?

Not if your pay by direct debit. As originators are required to give 10 days notice of the amount being debited from the account under BACS rules.

This is often the reason why the first payment is taken a further month after that of completion. As takes time to process the initial set up.

kingstreet

Can I point out that the initial payment during early days of the mortgage is interest only, no capital is included. The first payment to include capital is the first regular payment. On a 25 year mortgage, you'd still have 300 monthly payments of capital and interest after the initial payment is made.

smcqis

But can you overpay straight away and then techically wouldn't just be interest? Esp as I would like my repayments on 1st of each month (couple days after pay day) and if I exchange this week, I dont want to pay a month of soley interest on top of my first repayment