Best time to complete - first payment wise

Scottishrob79

Just received our mortgage offer today with a hypothetical first payment amount if we completed on March 1st, its £650 more than the other payments. Is it true if we complete at the end of a month, the first payment should be nearer the normal amount?

getmore4less

It makes no difference in the long run.

Short term cash flow issue borrow a bit more if you don't need it dues to timing overpay it back(within penalty limits)

kingstreet

As accrued interest is from completion to the month end, it is true that this can be minimised by completing as close to the month end as possible.

ShALLaX

If this is a concern, you may be living too close to the edge in terms of affordability limitations.

Scottishrob79

ShALLaX wrote: »

If this is a concern, you may be living too close to the edge in terms of affordability limitations.

Not a concern at all, like most I would rather spend less than I have to

Scottishrob79

kingstreet wrote: »

As accrued interest is from completion to the month end, it is true that this can be minimised by completing as close to the month end as possible.

Cheers kingstreet

opinions4u

If you wait until June you won't have to pay anything for March, April or May.

dotdash79

We have recently completed and I picked a date after the 1st of the month as we only needed to pay intrest on the mortgage for that month.

I din't want to pay part month rent, mortgage then a full months mortgage in the first week what with other moving cost etc.

jamesml

ShALLaX wrote: »

If this is a concern, you may be living too close to the edge in terms of affordability limitations.

Not necessarily - £650 isn't a small amount to have to stump up in the short term when you have a lot of other expenses to deal with at the same time. Especially if, as with another poster, you are looking at paying normal mortgage payment, rent, and additional interest in one month.


I believe it varies from lender to lender as to whether they charge you additional interest - that is only want I'm told by someone I know though. With NatWest I didn't pay any additional interest in the first month (completed on the 22nd though).

kingstreet

jamesml wrote: »

Not necessarily - £650 isn't a small amount to have to stump up in the short term when you have a lot of other expenses to deal with at the same time. Especially if, as with another poster, you are looking at paying normal mortgage payment, rent, and additional interest in one month.


I believe it varies from lender to lender as to whether they charge you additional interest - that is only want I'm told by someone I know though. With NatWest I didn't pay any additional interest in the first month (completed on the 22nd though).

Yes. Clearing banks do one thing, normally a simple monthly in arrears process, while building societies and former building societies collect in advance.

Scottishrob79

Broker got onto Nationwide and they said due to the date we want to complete (30th April), the first payment will be pretty much the same as the other fixed payments