Completion soon.. when will first mortgage payment come out?

toezilla

I spoke to the vendor today and we have agreed to exchange contract in the next 2 weeks and complete on Friday 23rd March to avoid the stamp duty fees. We are both ready to go and just tying up final bits and bobs (their storage for furniture etc)

My question is: if we complete on the 23rd March, we have a direct debit set up to take mortgage payments on the 25th of each month, does this mean that the 1st mortgage payment will be taken on the 25th March (Sunday) or the following month on the 25th April after we have moved in?

Thank you

Senior_Paper_Monitor

Depends on lender (different structure with each one).

And an interim payment is likely with many (it will certainly not be March).

Ask your lender or broker

Belmonte

Depends on the lender.

However, please be advised that your lender may start charging interest from the day of completion. Therefore your first monthly payment could be higher than your usual monthly payment.

First monthly payment = usual monthly payment + additional interest accrued between completion date and first monthly payment date.