Best Completion and exchange date? 30th or 3rd?

BezzyK

Hi all

As the title says, Which would be the best completion and exchange date 30th Sept or 3rd Oct? In terms of payment? We have choosen to pay our mortgage on the 1st of each month with Halifax.

So if we completed on either of these dates I guess we have to wait until 1st of November for the first payment to which will be double?? Or does anyone know if Halifax allow you to make the first payment ASAP after completion?

TIA

TrickyDicky

I think:

if you completed 30th september, first payment would be 1st November, for 1 month + 1 day
3rd october - first payment would be 1st December (1 month + 28 days.)

But at the end of the mortgage, you will have paid the same.

BezzyK

Thanks tricky will go for September then I think

getmore4less

The reality is it make little difference to the total paid.

The trick if not hitting limits is to borrow about 1 payment extra and then you have the funds to cover the first payment cash flow issue.

For a very big mortgage with overpayments limits this could result in excess funds that might take a couple of months to get rid.

Set completion on a day that is conveneient for the move not the payments.

Interest starts a few days before completion one of the reasons end of week is a common completion day.

opinions4u

Pretty sure Halifax will be 1st of the following month. If that's within 14 days they collect 14 days after completion (full payment for that month and initial interest) and then on the 1st of the following month.

So I reckon a 30th September completion will give you a first payment on 14th October; a 3rd October completion date will give you a first payment on 1st November.

In other words, ask them!

(It will be spelled out in the paperwork and booklets you've been provided with)