can you help?

lkmc01

Can you help me with this please?

https://forums.moneysavingexpert.com/discussion/3484037

I dont know who is right - Nationwide or myself

I didnt start the thread - please read from post 12

If you want to reply it might be easier to do over on the thread already started, plus it might help for people who want to know this in the future.

Thank you all you who have been through all this before

lvm

lkmc01 wrote: »

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?

Not 100% sure but I would bet on the month being a calendar month. You're right that you're paying for a month and a bit extra for the mortgage starting earlier.

Again, not sure about Nationwide but I would guess on you being charged interest daily so it's really not going to make that much difference when you're payment is. I know Halifax is daily.

I don't have Nationwide so don't know about online account but you'll be able to change your date quite easily if you need to. As for overpayments, there's likely to be something in the agreement about a limit to how much you can overpay.

Someone will probably able to give you definite answers shortly!

Samdy_Gray

Nationwide is daily interest.

Usually with their fixed rate deals you can OP by £500 per month without incurring an early repayment charge.

lkmc01

Yes, thanks. I know I can overpay by 500 a month and may do so. So if the interest is charged daily am I best paying on the 1st of the month to be charged less interest?

Samdy_Gray

With daily interest, the sooner you make the overpayment the sooner you will save yourself additional interest. So yes, if the earliest you can make the overpayment is the 1st of the month then do that.

lkmc01

Samdy_Gray wrote: »

With daily interest, the sooner you make the overpayment the sooner you will save yourself additional interest. So yes, if the earliest you can make the overpayment is the 1st of the month then do that.

Its not an overpayment, its the mortgage payment

Samdy_Gray

Perhaps someone can confirm for definite, but I doubt it would make any difference. With the same amount of days between payment dates you'd still incur the same amount of interest over the course of a month.