When will the first mortgage payment be taken? (Santander)

Lbarn

Hi Guys

Just wondered if anyone knew or could hazard a guess as to when our first mortgage payment will be taken?

Fingers tightly crossed exchange tomorrow, friday completion (friday 4th may).

I am trying to plan all of our finances, as we rent and haven't handed our notice in yet as we need an overlap of a few weeks so we will potentially have to pay mortgage and rent for a period of time.

Also is rent always paid upfront? we cant remember but guess we are a month in advance?

Any advice, or recent experiences would be appreciated.

Notmyrealname

Usually on the payment date the month after you've moved in as long as it is at least 2 weeks or more (they have to give you 2 weeks notification of the Direct Debit) so if you COMPLETED in the last week April and the payment was due in the first week of May you'd not make a payment until the first week of June.

Rent is usually paid upfront.

G_M

The best person to ask about your morgag payment date is... your mortgage lender.

Rent is usually paid a month in advance, but not always. What does your tenancy agreement say?

SternMusik

Even if the first regular mortgage payment doesn't go out until the first of June (check with your bank), you will still be charged interest for the period from completion (or the day before) until the end of May. This will either be added to your loan, or the bank takes a separate payment for this amount towards the end of May. (Again, it is best to call them and ask.)

kingstreet

Timing of first payments depends on the type of lender you have chosen. Banks collect in arrears, building societies and former building societies in advance, and this makes a difference.

Accrued interest then makes an added complication.

Interest starts accruing from the point your solicitor receives the funds from the lender. Depending on when in the month you complete, this accrued interest can be a small amount for a few days or could be almost a month's interest.

Let's say you complete in mid-December. The accrued interest would then be for the period to 31 December, plus your first regular payment would be due, so you could pay roughly a payment and a half. If you borrow from a building society or former building society, this payment would be debited on 1 January, as you pay in advance.

If you are borrowing from a clearing bank, this payment would be debited on 1 February as you make payments in arrears.

I would suggest checking your mortgage offer carefully to establish the procedure adopted by your lender and expect a completion letter from the lender around a week after completion confirming the payment amounts and dates.

Lbarn

Thanks guys for your responses. Our lender is Santander.

I will contact them this week, i just wanted to ask on here as you lot generally know the answers and as it was the weekend I wanted to plan our finances for month end.

I think safest bet is we plan 1.5 x our mortgage payment + our month's rent for worst case scenario.... about £1700 then gulp! lol.

It will all be worth it when we have the keys to a house we have fought long and hard for.... all being well tomorrow!