First payment

tiny_atoms

Hi all

We have completed with Nationwide on a house yesterday, does anyone have any information on when the first payment will be? We have asked for it to be taken out the 1st of each month however I have heard it can take them a while to set things up..anyone have any ideas? And also, is the first payment normally double the normal monthly payment?

Thanks

Gonzo33

You will get a letter through confirming when the first payment is and how much. Not sure about Nationwide.

Fire_Fox

Varies from lender to lender, ask Nationwide.

julieb1987

Speak to Nationwide or check your documentation. We're with Natwest and were told when we applied the 1st payment would be the month after we complete (in our case 3rd of the month).

FireWyrm

Sometimes a lender will pro-rata it, so part payment from completion date to the next 1st of the month and every month thereafter.

However, all are different. Best to check, or just make sure you have more Ghana enough in the bank account ready.

kingstreet

Completion on 5th would normally mean;-

- accrued interest for period from 5th to 30th debited around two weeks after completion with first month's normal payment debited on 1st December

or

- accrued interest from 5th to 30th debited with first month's normal payment on 1st December.

As a building society, Nationwide collects payments in advance.

Clearing banks, like NatWest, HSBC etc collect in arrears, so the first regular payment would be a month later.

bigmomma051204

Oooh i was going to ask the same thing - we are completing tomorrow (yay!!!) so the 7th November and i wondered when Lloyds (providing mortgage) would be taking the first installment as i remember the mortgage advisor telling me something about it being a larger first installment (usually £491 but will be about £690 i think) ..... so god knows when they will be taking it LOL :cool: God i am SO lost with all of this eeeeek!

TheMetalMan0

kingstreet wrote: »

As a building society, Nationwide collects payments in advance.

I was told the complete opposite of this when I spoke to Nationwide.

I was told (using your example) that if we were to complete on the 5h then we would pay a pro rata payment on 1st January (the day each month we'd picked for the payment to come out) that would cover the mortgage payment from 5th - 30th December. Then 1st February would be our first full payment.

Best to either check your paper work or to call your mortgage advisor.

Gonzo33

I completed on my house on 26/10. I got a letter from my lender (Barclays) to confirm that I would be making a payment on 16/11 of one months payment plus interest from 26/10 to 16/11. Strange because I am sure we asked for the mortgage to debit on the 1st of every month, but there we are.

kingstreet

TheMetalMan0 wrote: »

I was told (using your example) that if we were to complete on the 5h then we would pay a pro rata payment on 1st January (the day each month we'd picked for the payment to come out) that would cover the mortgage payment from 5th - 30th December. Then 1st February would be our first full payment

Assuming you're talking about 5th December, the accrued interest and first monthly payment should be made on 1st January. I don't believe the Nationwide system has changed but I'll check.

TBH the only way to know for definite is when you get the letter after completion telling you the actual dates and amounts.

kingstreet

This is from Nationwide's site;-

Your first payment

When working out your first payment we calculate the interest on a daily basis from the day we release the funds and this is added to the following month's mortgage payment.

The first payment is generally taken the month after completion near or on the date specified on your direct debit form. For example; if you complete on 25 March, the first payment will be debited from your bank account in April, on or near the date you specified on your direct debit form. The payment will include interest incurred from 25 - 31 March and your revised monthly mortgage payment.

http://www.nationwide.co.uk/search/DisplayArticle.aspx?article=1154