When will my first mortgage payment be?

mysk_girl

I would leave it until the following month as a minimum so as not to confuse their computer systems! You could try asking on the mortgage free wannabe board, they are experts in this stuff...

lkmc01

Thanks.

After the 28th when my first payment has gone through if I try to change the payment for the following month to go through on the 1st there will not be enough time to set up the payment.


I just think that in the same way as a regular saver account, if you pay money through at the beginning of the month you earn more interest as the money is in the account longer, its the same with mortgages, if you pay at the beginning of the month your money is paying your mortgage off quicker so you are charged less interest.

Do you see what I mean?

I think I will go into nationwide today and say that I want to leave my payment as the 28th for this month, but change it to the 1st for next month.

gordylad

this is what I got told from a very helpful girl at the YBS. My question was:

when is the best date to complete as we like to pay our mortgage on the 1st of the month.

Answer was: If I complete say 28th Sept I will receive a letter 14 days later requesting a full month payment, including interest accrued. No thanks.

If I complete on Monday 3rd October I will receive a letter 14 days later asking for interest accrued only with normal mortgage payment to begin 1st November. That's better for us as we will cancel our existing lender payment and complete on the 3rd but use the existing lender payment to pay accrued interest as well as make a first overpayment.

Doing it this way saves us a lot of hassle. Going for the tracker 2.29 [2 years] and then 3.79 fixed for [3 years]. Short term state of the economy is apparent but longer term playing safe.

lkmc01

thanks, but with nationwide the completion date does not affect the payment date as I can choose what date I want to pay my mortgage.

Do you think I am right as.....

I just think that in the same way as a regular saver account, if you pay money through at the beginning of the month you earn more interest as the money is in the account longer, its the same with mortgages, if you pay at the beginning of the month your money is paying your mortgage off quicker so you are charged less interest.

gordylad

I think any company will allow you to choose whatever date you want to pay your mortgage. We pay ours on the 1st and I make overpayments on the 2nd when the interest hasn't been accrued.

We chose to complete in the way we did to avoid having a payment go to the existing lender and than have to wait for a refund when everything had completed.

Joe_Bloggs

@lkmc01
The daily interest on the 85K @ 4.14% is £9.44. For every £90 above this the amount of daily interest will increase by a penny. For every £90 below this this the daily interest will decrease by a penny.

Thus a standard repayment of will initially reduce your daily interest by 3.8p. Over the following days the daily interest will creep up by a penny every 10 days to be just 0.6p below where it was at the start of the month.

The key to timing regular mortgage repayments is to look at the difference between the returns of the other things you could have done with the money for the period of time between acquiring the payment and making the mortgage payment.

J_B.

pinkteapot

Can you call Nationwide instead of the broker? I called HSBC prior to completion and they told me the date of the first payment and how much it would be!

lkmc01

pinkteapot wrote: »

Can you call Nationwide instead of the broker? I called HSBC prior to completion and they told me the date of the first payment and how much it would be!

I know how much the first payment will be and when it is

lkmc01

Joe_Bloggs wrote: »

@lkmc01
The daily interest on the 85K @ 4.14% is £9.44. For every £90 above this the amount of daily interest will increase by a penny. For every £90 below this this the daily interest will decrease by a penny.

Thus a standard repayment of will initially reduce your daily interest by 3.8p. Over the following days the daily interest will creep up by a penny every 10 days to be just 0.6p below where it was at the start of the month.

The key to timing regular mortgage repayments is to look at the difference between the returns of the other things you could have done with the money for the period of time between acquiring the payment and making the mortgage payment.

J_B.

Thanks, but the house price was 85k of which I have put down 25%, so my loan is 63750. Is my daily interest charge therefore

£63750 x 0.414 = 2639.25
2639.25 / 365 = £7.23

Today I am going to go into Nationwide and cancel my mortgage payment due out on 28th Sep and pay it today instead with my natwest bank card. I am then going to set my mortgage payments to come out on the 1st of the month. Will Nationwide let me do all this today in branch?

mysk_girl

To be perfectly honest, I would let the first payment go as planned to avoid confusing their systems. You can manually pay on the 1st using Internet banking for this month and then call them to change it to the 1st for the following months regular payment. Also, I'm not sure they will accept debit card in branch, but could you do it cash?