First mortgage payment - when?

quichelorraine

Hi everyone, we completed this morning! Whoop!

Picked the keys up at lunch and moving in tonight - our first home and glad to finally be on the ladder.

One question, when will we make our first mortgage payment? Basically when I set up the direct debit instruction when applying for the mortgage we put the date down as the 1st of the month for payments. Today is the 17th, and I have checked my bank and nothing has come out today, I assumed that we would pay for the remainder of this month today, and then pay first full monthly payment on the 1st. Or will it be a case that on the 1st we will make a payment for 1 month plus the 14 days of this month?

gazfocus

Can't help with your question but just wanted to say congratulations We're in the process of buying our first house and finding it incredibly difficult to not get excited until everything goes through.

quichelorraine

Thanks Gaz. My advice would be just that, don't get too excited. It took us much longer than expected, and only just managed to exchange yesterday afternoon. Just be prepared for issues along the way, deal with them quickly and try not to let the stress get to you too much - a bottle or two of vino helps haha. But, in the end, you will get there - I was beginning to think it would never happen, but it has

ka1rua

I completed 26th april recieved a letter telling me that on the 18th may that i would pay the normal month plus some interest so was a bit higher.
Then normal payment to be taken out on the 10th may normal time for direct debit.

kingstreet

Which lender?

Horseunderwater

The normal procedure with the lender )and it should be in your agreement specifying how) is normally paid on the date you wish ie 1st of month, but some lenders have certain days of the month from which interest is calculated. When we were with woolwich way back it was 16th of month, but we paid on 1st, so our first payment back then was paid 1st of month but backdated to when mortgage completed which in our case was 6th of month - so 1st month ran from 6th to 1st of month and this was taken from account our bank account together with 2nd month all in one go. So in effect it was part of month one + month 2 on 1st of the 2nd month in if that makes any sense. 2nd payment was month 3 and normal agreed amount. However, some lenders now have 2 dates in the month from which to calculate this, so look at mortgage agreement and read it all through, for you do need to do that and see what it says. Somewhere it should state in the offer what first payment should be anyway. May be a few pence up or down as to what actually leaves your bank, when it happens. If you do on line banking and it has a facility to see DDebits set up. Check that to see if the instrument for payment is physically there. Once that is in place, then you will or should know that DD will happen. It might not even be the 1st of the month, so long as you know what 1st total is approx, then make sure that amount is left in bank until it has gone out. Better safe than sorry. Oh and some advice ( make sure that Council tax and TV license with utitilies) as well as mortgage are covered and paid before you even think of paying for anything else. Those are priority debts and you must have buildings insurance pref with accidental cover included as the minimum cover in place too. Lenders will insist on that. So add that in as well.
Once those bills are gone out, you can sort out the rest. Set a budget up now and stick to it. Trust me, we got into a mess twice because we did not understand that as well as we should have - but I have a very tight grip on it all now.
Oh and finally - congratulations on your new home.

alinwales

Horseunderwater wrote: »

... so our first payment back then was paid 1st of month but backdated to when mortgage completed which in our case was 6th of month - so 1st month ran from 6th to 1st of month and this was taken from account our bank account together with 2nd month all in one go.

I'm expecting this, having just remortgaged (britannia, but was the same first and second time around with halifax) - the paperwork is fresher in my mind (and easy to get hold of) than when moving and everything gets lost!

quichelorraine

Thanks. Yeah we have budgeted for everything quite well, and so paying final bills etc shouldn't be a problem. We also are prepared for a large chunk to come out next month for the mortgage!

All settled in and pretty much unpacked now and love our new home!

kingstreet

In general, in the absence of the requested lender's name.

Building society or former building society - 14 days accrued interest plus one full month's payment debited on 1 June 2012.

Clearing bank - 14 days accrued interest plus one full month's payment debited on 1 July 2012.

Building societies and former building societies collect in advance, clearing banks in arrears. Both charge accrued interest from the point of completion upto the end of the month in which completion takes place.