When will my first mortgage payment be?

lkmc01

Thanks.

We completed and moved on 23rd August this year. We paid 85k for the house. We were / are first time buyers with a 25% deposit.

We originally had the 4.89% 5 year fixed mortgage offer with Nationwide paying £400 arrangement fee and the £99 booking fee. We changed it before completion to the Nationwide 4.14% fixed 5 years mortgage not having to pay another £400 arrangement fee, but having to pay another £99 booking fee. We still owe my dad for £400 which we borrowed to pay the arrangement fee.

We are due to pay our first mortgage payment with the interest on 28th September. The amount is £408.92, the monthly payment after that are £341.44.

The question is

• when does the month run from and to in regards to our mortgage - is it from the 1st of the month? or is it from the 23rd of the month? I think its the 1st due to having to pay additional interest on our first monthly mortgage bill, but can someone please confirm this? thanks
• also, is there a best date in the month to pay our mortgage to keep interest to as little as possible. At the moment we will not be able to overpay as there is only one of us working, but in future if we were both working we should be able to overpay.

thanks :beer:

Can I change my mortgage payment date and increase the amounts if I want using the online mortgage feature you (Joe Bloggs) have mentioned?

Joe_Bloggs

The mortgage demo page did not work on my browser.
They do an alternative version here.

Lots of payment of mortgage payment alternatives here.

The date for payment can't be changed online. The date is not mentioned on the monthly payment details page. Changing dates and amounts requires co-ordination between all parties. Phone the Nationwide to get the facts regarding the actual first repayment date. This date finishes the old month and starts a new one.

In my case an internal transfer from the flexaccount is used for regular payments. I chose to make my overpayments separate from regular payments. This way I was not tied in as to how, when and how much, or how many times, up to the 500 per month, I had to pay.

J_B.

lkmc01

My first repayment date is 28th of sep. Does the month not automatically run from the 1st then?

Joe_Bloggs

If I was to make a 500 overpayment on or before the 27th then I could make the next overpayment on the 28th or later without exceeding the previous months 500 limit.

Interest is charged daily and displayed online daily.
J_B.

lkmc01

I've just rung Nationwide who say that the month for mortgage paying is the normal calander month, from the 1st, but she also says that the interest you are charged each day during the month is the same regardless on which day you make the payment on!!

Can anyone explain this please, as I still dont understand. Surely if you pay your mortgage on the first of the month and are charged interest daily then you are paying less interest than if you pay your mortgage at the end of the month.

Lady over the phone for Nationwide did not explain why this is not the case.

Is Nationwide wrong? Trying to con me? Am I wrong? Why?

If Nationwide is right then I suppose its best to pay your mortgage at the end of the month and stick the money from weekly wages into an instant access account ready for the mortgage payment date.

!!!Please help!!!

Thanks

mysk_girl

Nationwide require one payment per calendar month into your mortgage account. I've just been through this myself! I've set mine to pay on the 5th every month. But I am perfectly at liberty to cancel the direct debit and pay by cheque, online transfer, pennies in branch or whatever I like as long as they receive one payment per calendar month for the required amount. They don't accept Tesco clubcard vouchers though, I handed some over by mistake when making an overpayment in branch!

I have to say, I thought the same was true for overpayments - the limit was £500 per mortgage account per calendar month. I'm on BMR now, so no limits, but am pretty sure I've overpaid £500 on the 25th and then again on the 4th next month with no penalty. I would check this though, I might be wrong!

mysk_girl

And interest is definitely charged daily, so make the payment ASAP - if you are weekly paid you could pay some each week, but you would have to be careful to make it add up to the right amount each month. As normally people pay on the same day each month, normally after the first month there will be a months worth of interest between each payment. Nationwide work it out so that your payments don't change each month, but every month that goes past you will be paying less interest and more capital.

lkmc01

So who is right, Nationwide or me, am I best to pay at the beginning of every month or not?

mysk_girl

I think it would make little difference, because after the first month there will always be a months worth of interest between payments. If you are earning significantly more interest on your current account than you are paying on your mortgage it would possibly be worth hanging onto the money as long as possible, I doubt this is the case for many people.

lkmc01

We moved in on the 23rd August with payment going through on 28th of the month, the first one being 28th of this month, do you think I am best to leave it as this then?

I get nothing on interest in my current account, 3% on instant access and will be opening a kids regular saver with halifax 6% soon to start to pay my 6 year old back the 2.5k I borrowed off him to go towards the deposit