1st initial mortgage payment? a few questions

nic99_2

My partner and i are hopefully moving to a more expensive house soon.
Our current mortgage is tied in for another year, so as to avoid RDC of £1300 - we took out the extra cash needed on another deal, a 3 year fixed.
So, when the current deal runs out in a years time, we will then put that on a 2 year deal, so in 3 years time both deals can be combined.
Is this the best way for us to do this?

Also, our new combined monthly payment will be £573, but reading the bumf that the lender sent us(alliance and leicester), they say that the 1st intial monthly payment is going to be £850!!......can anyone explain this please?

thanks

BeerBelly

Hi there, our lender said out first payment would need an extra £726
!

BUT, when I spoke to them, it was an estimate they may on assumptions.

Now that we are completing on the 30th and payment comes out on 1st each month, we only have to pay an extra days worth in the 1st payment.

Also, the first payment can take up to 2 weeks to come out, so it may seem you are paying in a shorter space of time (eg 1st and 2nd payment are 2 week apart), but your actually not.

E.g.

!st Mar payment due
|
|
| up to 15th Mar - 1st payment is actually processed
|
|
1st April - 2nd payment comes out
|
|
|
|
|
1st May - 3rd payment comes out


Just make sure your completetion date is near the end of the mont and near when you want payment to come out.

Im also FTB and it took me a long time to get my head round it, but think this is right!

danm

if for example your payment is on the 1st of the month (month 2), and you move on the 15th of the preceeding month (month 1)you will owe interest for the 15 or so days between the day you move and the date of your first payment.

this is standard