Completion Day

ftblouise

Hi
We have just completed today :j. How do i work out what my first mortgage repayment will be? My bank said today that they will send me a letter next week to confirm the amount but can't tell me over the phone and that the first repayment date will be July 1st.

We brought the house for £95,000. £20,000 deposit put down so lent £75,000 from the bank.

Thanks

angrypirate

There are many mortgage calculators out there that will tell you what your monthly payments will be. As long as you know the interest rate and term of course! Just google it!

casper_g

angrypirate wrote: »

There are many mortgage calculators out there that will tell you what your monthly payments will be. As long as you know the interest rate and term of course! Just google it!

As above, but note that, depending on who the lender is and how the first payment is timed relative to completion, the first payment may be larger than the typical monthly payment. This is because some lenders charge the interest in advance and you'll be paying interest to cover the time since completion as well as for the first full month.

The best way to find out exactly how much the first payment will be is probably to ask the lender.

sonastin

If you're looking to find out how much to budget for in the first month, I'd use one of the repayment calculators mentioned to find out your usually repayment amount (if you don't already know it) and then double it. The payment won't be quite that much but for the purposes of budgeting it guarantees you'll be covered.

Reason being, at the beginning of the term, most of the payment repays interest anyway - capital repayment is slow to start with. And you've completed right at the beginning of the month so if they charge interest in advance, you'll have all of June's interest and all of July's interst plus a very small contribution to repaying the capital (assuming you're not on IO). I completed mid-month and my first payment was about 1.5 x the usual amount...