First payment

lee111s

Good morning,

I've done some searches on here and on the internet but can't seem to get a definitive answer.

My mortgage is with Yorkshire Building society I'm due to complete on March 27th but I'm not sure when my first actual mortgage payment will be. I'm aware that I need to pay for the daily interest accrued from the day before completion.

Will I pay my first full mortgage payment 14 days after completion along with the interest for March, making the payment making the payment about £562? Or will I pay the 3 days interest of £37.86 around the 10th of April and then the first full mortgage payment (524.79) on May 1st?

Thanks for any help!

_Andy_

Have you rung YBS and asked? they will give you a definitive answer

dotdash79

Phone them, you might have to may the first payment via card then the DD will take over.

I tried to pay mine on the day the mortgage funds were transfered, and they said they couldn't take it, but I had until the end of the month to pay. (this was on the 5th of Feb)

lee111s

I rang them earlier and to be hones they were useless. Told me they couldn't see anything regarding payments or dates until the mortgage completed

mrsmchapman

It depends on the date you complete and the date you asked for the payments to start. I was under the impression that you pay the interest from the beginning of the month, which means your first month is usually higher. Did you go direct with mortgage? Or have a broker? Does any of your paperwork indicate a chosen date?

lee111s

I went direct through the BS.

I've requested to pay on the first of the month, however because of the DD scheme requirements, there has to be 14 days between the request of the payment and the payment being taken. And they can't request payment until the mortgage completes. As I'm completing on the 27th of the month, this will be around 10th April, give or take. What I'm not sure on, is whether this will be a full payment, or just the March interest payment.

I thought payments were made in arrears so the first actual mortgage payment would be May first and would be capital, plus the interest for April. Or am I not understanding correctly?

kingstreet

You're making an incorrect assumption.

Clearing banks charge in arrears. Building societies and former building societies charge in advance.

In my opinion, you will pay the first full month's payment, plus the accrued interest together between the middle of April and 1 May.

YBS may have good rates, but its customer information is lousy. This is what Halifax says about the first payment and it shouldn't be too far out for you;-

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.

YBS will write to you to confirm the amount and dates of payments on completion day.

lee111s

That's great Kingstreet thanks for that. Clear it up and is how I suspected it would be, although would have been nice to have it the way I WANTED it to be haha!

First payment of ~£562 will be around 14 days after completion.

Thanks again