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Completing on June 25th - when does first Mortgage payment come out?
BritishBulldog
Posts: 27 Forumite
As the title really, we are completing our house purchase on June 25th, will a payment come out the same day, if so will it be a full payment, or partial? I know we requested that payments be made on the 1st of each month when we signed up for the mortgage, so will it be July 1st instead?
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It depends on the lender - whether they charge in advance or in arrears. Typically, building societies and former building societies collect in advance, clearing banks in arrears.
If in advance, your first payment will be debited a couple of weeks after completion and it will be interest from 25 June to end of June, plus a full month's payment for July.
If in arrears, you'll pay your first payment on 1 August and it will be the accrued interest for the five days, plus the full payment for July.
Either way, the lender will write and confirm the date and amount of payments as soon as completion takes place.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
I completed on 19 April and also asked for mortgage payment to go out on the first. I had a letter from the lender soon after completion telling me that they would take the first payment on 9 May and what the first payment would be (you will pay the normal mortgage payment for July plus the interest from 25 June to 30 June).
The lender will write to you as under the direct debit guarantee they have to give you so many days notice before they take the payment from your account.
Hope that helps.0 -
Cheersfolks, its with HSBC so presumably it'll be August 1st..it just gives us an idea thats all of when to expect it to come out of the account.0
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We completed on the 24th of May, we were able to choose our first payment (although it took ages to find this out) our first payment is on the 28th of June and is £150 more than the usual monthly payment.0
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BritishBulldog wrote: »Cheersfolks, its with HSBC so presumably it'll be August 1st..it just gives us an idea thats all of when to expect it to come out of the account.
My mortgage is with HDBC - I completed my purchase on the 21st of December last year. My first payment was on the 4th of February, and was larger than the normal payment to make up for the additional days. They sent a letter the week after I moved in that detailed the date and amount of the first payment.0
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