Halifax mortgage first payment - confused!!

lucyloo77

We've exchanged contracts and are due to complete on our house on the 5th April. We're having a Halifax repayment mortgage and I believe my solicitor intends to get the funds ready the day before completion.

I think our normal payment date is to be the 1st of each month (although I can't see this in the mortgage offer??) but I'm confused about how much and when our first payment will be.

I'd always thought it would be taken on the 1st May with all of April's interest added on top of the normal payment amount (so fairly close to a double payment amount for that first month). But now I've read that if the mortgage is taken out between the 1st-9th of the month then Halifax collect 'initial interest' 14 days after completion (so that would be the 19th April I guess).

But what is the initial interest? Would that be all the interest due for April, and then normal monthly payments start from the 1st May? Or just 14 days interest? Or more than that??

Or will Halifax also take a normal monthly payment amount 14 days after completion on top of the initial interest as well? Hope not!!

Our normal monthly payment amount is to be £638.

Both me and My OH get paid at the end of each month, so it will be a bit of a kicker to have a fairly large sum being taken so soon after completion just before our paydays - that's why I want to know, so that we can work it into the budget if need be!

Hope my question makes sense and isn't too garbled!!

thomasdown

Answer is simple plan/budget for the worst outcome and if it happens then all good! If you get the lower payment then u have some extra cash to save or spend? Otherwise ring the Halifax and ask what will come out at what day/time? They should be able to tell you?

opinions4u

I believe you will have initial interest collected on the 19th April and the first full monthly payment on the 1st May.

But why not get this confirmed by whoever arranged the mortgage for you?

lucyloo77

Thank you guys, that makes sense. And the initial interest should be interest from 5th April - 30th April, right?

I'll check out for definite with my broker as soon as I can, but he's on holiday for a few days at the moment!