First Mortgage Payment

Daveswindon

Hi hope you can help.

I am due to complete on my first house next wednesday (15/08/12) and have set the mortgage payment up to be the 2nd of every month. Just wondering when the bank will be taking the first payment and how much it would be. The mortgage is through Santander and is approx £460 a month. Would phone the bank but my mortgage advisor is on holiday this week.

Thanks,

Dave

gingeralan

I would say they would take on the 02/09/12 and the amount would be £460. This was how my FirstDirect Mortgage worked out in January (almost identical dates) but I guess it does depend on Santanders T&C's. Try ringing the mortgage servcing call centre, they should be able to answer your question.

sten_super

The precise details will depend upon your terms & conditions, check them. However, I don't think that gingeralan's suggestion is correct; typically the first payment is not made until at least one month after completion, and will be larger than a standard payment in order to account for the extra interest incurred. Below is what is happening with our mortgage when it starts next month (Britannia);

Completion 17/09/12
First payment 17/10/12 - includes standard monthly payment + interest incurred from 17/09-30/09
Second payment 01/11/12 (our nominated payment date) - standard monthly payment

gingeralan

Not what happened to me. My mortgage was drawn down on January 23rd and my first payment left on 3rd Feb for the Std mortgage payment.

LauraWxx

I complete on the 28th of Aug and have set payment to go on the 2nd (ish) of the month, I asked FA yesterday when first payment will be taken to which I was advised it would most likely be the 2nd of October, not september.

This would be for a full months worth and a couple of days.

That is with nationwide.

Paige_Turner

Our mortgage with Northern Rock completed on 2nd August. Our offer said that on the on rare occasions when funds are released at the end of the month, the first mortgage payment is due immediately. My solicitor advised me that the funds didn't hit her account until 2nd Aug so I thought we were clear until September. However, we then got a letter from NR yesterday saying that they released the funds on 30th July and that an interest payment was now due. Our mortgage is £582 pm, and we were due £481 immediately.

TBH we feel a bit sick about it, seems like the £500 cashback offer we had was basically taken back.

If only we had waited until the start of this week to move then we wouldn't have had to pay anything til September, giving us a bit of breathing space... Oh well. It's done, tighter belts for the rest of the month!!

Just a warning!!

LauraWxx

Thanks for warning! To be honest I had worked on the basis that I would be making the first payment in September so if it goes it will not be a problem....just a nice thing if left till October!!

Who would be able to advise for sure...would it be solicitor, fa or mortgage company after completion?

sten_super

LauraWxx wrote: »

Thanks for warning! To be honest I had worked on the basis that I would be making the first payment in September so if it goes it will not be a problem....just a nice thing if left till October!!

Who would be able to advise for sure...would it be solicitor, fa or mortgage company after completion?

The mortgage company will have probably already outlined this in the documentation that they've sent to you - with us (application through a broker) Britannia included it in the Mortgage Application Form that they sent to us after the application had been approved subject to valuation and proof of income. However if it's not mentioned in any of that paperwork I don't see why you shouldn't contact the lender directly and ask them.

LauraWxx

I have the paperwork for the original mortgage application that was done to Halifax but this was approved and then declined due to overexposure on the development (cant have too many properties with same mortgage provider for some reason) anyway, application was done by FA for the Nationwide application in a bit of a rush and i dont have copy, i have the offer letter but have just requested copies of all paperwork from FA for my records. If not, as you say i will give nationwide a call.
Thanks for advise and OP sorry for high-jaking thread!!!

jdmwoods

We completed on the 19th July and our first payment was 1st August for the interest owing between 19th and 1st (initial interest) plus the full standard mortgage payment, but that was with Halifax. Don't know if others do things differently.