1st Mortgage Payement - when??

evosy1978

Hello all.

Im sure I read somewhere that its best to have your first payement at the begining of the month because if you have it elsewhere in the month, you will pay extra interest on your first payment.

Can someone confirm, or explain to me how this works or whether this statement is true at all.

Thanks

dunstonh

Depends on the provider. When paying in advance, then with some lenders it is worth getting a week or two before their due date to keep the first payment down but you are not paying any more. You are paying exactly what you are meant to pay.

i.e. if you borrow the money on the 20th and the direct debit is for payment in advance on the 1st then the first payment will be the month ahead plus the 10/11 days from the 20th to the 30th/31st.

Most lenders are daily interest so it doesn't really matter apart from budgeting for the first payment.