First mortgage payments, 2 within a month?

NatWill_2

I completed on the 30th October with the Halifax

They sent me a letter saying £555.56 would be taken on the 12th Nov and my normal payment of £531.60 will be taken on the 1st Dec

Is it normal to pay 2 payments within such a short period (ie £1087.16 in the first month) after completing?

happycamel_2

In my experience, yes.

TrickyDicky101

I believe Halifax mortgage repayments are made on an advanced basis (as opposed to in arrears) which means that the first repayment is technically due on the day you take out the loan (arrears basis means repayment due one month after loan taken out), hence why you will be charged these two amounts relatively close together.

This is consistent with all building societies (ex- and current). The banks (Lloyds, Nat West et al) tend to charge on an arrears basis.

NatWill_2

Thanks for the replies, just making sure.

kingstreet

If you look in the guide "About Your Mortgage" which should have been sent to you with your offer, page 7 reads;-

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.

Building societies and former building societies collect in advance, so your first payment, for the month of November, is collected in mid-November, with your first regular payment being collected in December, on 1st if that is your chosen payment date.