First Mortgage Payment

Izzy529

Hi guys

Concluded missives on first house on 25th of May and due to get keys tomorrow.

Just wondering if anyone knows when the first payment usually comes out and if it is full payment, half payment or double payment.

The lender is Leeds BS and I have emailed our advisor about it but she is on holiday until Friday.

Any help would be great.

Thanks

Skinto_7

Izzy,

it may be dependant on the lender, mines was with Santander and i moved in on the 27th of march with the 1st payment coming out on the 1st may, (1st of the month was when i had set payment up for).

The payment was slightly higher than my standard monthly amount, this was to cover the 27th-31st march which no payment had been taken for on the 1st april.

As i say may be dependant on lender however this was the case with me and santander so hope it helps!

MiniSis

I have been thinking about this today! I complete in Friday 1st June and have no idea when my first payment will come out. I want my DD to be 1st of each month though. Do they write to you? Do I need to call? I need to budget if I'm paying 2 months mortgage on July 1st.

Sorry to hijack (mortgage is Halifax btw)

Skinto_7

Minisis,

You would need to check with lender, however if you move in the 1st june, then 1st payment should be 1st July for your standard monthly amount, this would cover payment for the month since your mortgage started, they should not be charging you a month in advance aswell.

Izzy529

Thanks for the replies.

Do the mortgage company need to give you notice of when they plan to take the direct debit because its a different day and amount?

Received a letter from life insurance company to confirm they will take double payment on the 12th of June and normal payment on 1st of July. It said on this they were required to give 5 days notice for this.

Anyone know if lender will have to do the same?

Skinto_7

Im not sure legally what they are obliged to do, however i recieved a letter from the mortgage company when the funds were cleared and money was with solicitor on this it notified me of the first payment date and the amount due.

Not sure why the life insurance are taking a double payment on the 12th then a sigle payment on the 1st, that would mean that by the end of july you will have paid for 3 months cover put only recieved 2 and will basically always have paid one extra month?!

TrickyDicky101

Building societies traditionally required mortgage repayments in advance as opposed to banks which charged in arrears. Thiswould mean your first repayment would be due the date you have the mortgage amount advanced to you (ie completion date). In practice, your first repayment is usually in the month following the month of advance, so in your case you may well find on the 1st July your repayment is nearly double your usual monthly repayment, which will include the additional month's interest covering the 1st June to 1st July.

Definitely get confirmation from your broker or lender, as otherwise it could come as a nasty surprise (it did for me).

kingstreet

Full information in leaflet you should have received with your mortgage offer;-

C. First and subsequent payment collection
dates

Depending on when in the month you take out
your mortgage, we will collect your initial interest,
together with your first and subsequent payments
as follows:
• Mortgage taken out on 1st-9th – we will collect
initial interest 14 days after the date of your
mortgage. We will then collect your first
monthly payment on your preferred payment
date in the month following the month during
which you took out your mortgage. We will
collect subsequent monthly payments on your
preferred payment date each month after that.
• Mortgage taken out on 10th-17th – we will
collect initial interest and the first monthly
payment on your preferred payment date
in the month following the month during
which you took out your mortgage. We will
collect subsequent monthly payments on your
preferred payment date each month after that.
• Mortgage taken out on 18th-31st – we will
collect initial interest and the first monthly
payment 14 days after the date of your
mortgage. We will collect the second monthly
payment on your preferred payment date in
the 2nd month following the month during
which you took out your mortgage. We will
collect subsequent monthly payments on your
preferred payment date each month after that

http://www.halifax-intermediaries.co.uk/pdf/mortgage/all-about-our-mortgages.pdf