when best to complete a mortgage

carl_t · 20 February 2013 at 10:11PM

hi all
to avoid the broken interest that the banks charge on your first payment, if I plan say to pay my mortgage on the first of each month, is it best to complete the mortgage at the end of the month ?

lee111s · 20 February 2013 at 10:36PM

Yes, completing towards the end of the month will reduce the number of days interest you'll pay. I'm completing on 27th March so I'll pay 5 days interest, plus my normal monthly payment on 10th April give or take a few days. Reason being is that it take 14 days for the DD to be set up from when the lender requests it.

Thrugelmir · 20 February 2013 at 10:58PM

Completion is set when all parties (in the chain) agree to a given date. So not always possible to be precise at the outset.

Let_Us_See · 20 February 2013 at 11:01PM

Depends on lender, as most have their own procedures for debiting initial payment. Best to have up to 2 months mortgage payment available to cover all eventualities.