First repayment on new mortgage

mossy

Hello, stupid question alert!! :eek:

We are about to buy a house, with a mortgage from Barclays.

Can anyone tell me when will the bank take the first mortgage repayment? Will it when they give us the money when we complete? Or will it be the following month?

I've just been on their website and seen that they take their mortgage repayments on the 16th of each month.

Thanks in advance, hope it makes sense....maybe not?!?

happycamel_2

Ask them. Mine came out six weeks after we completed and therefore was considerably more than a standard payment because it included the interest and capital repayment portion for the whole period since draw down.

macarena123

It will be the first 16th after you complete. Bear in mind that your first payment will be the normal payment, plus interest accrued between your completion date and 16th

If 16th doesn't work that well for you, you can talk to your lender and they should be able to change it.

mossy

Thank you peeps!

So, say for example we completed on the 12th July.

Do you think they would charge us or the days from 12th-15th July? Or would they charge that plus a month in advance.

I guess I'll give them a call, just trying to work it out. However, as you were charged for six weeks Happycamel, maybe the first charge will come out on the 16th August.

Will pop in to the branch and try and find out.

KennyH1

Give them a call as each bank does things differently.

Natwest gave us a months grace when we moved in and also did that on a previous property that was re-mortgaged.

StuC75

They will write advising of what & when they take the funds - and
Under the DD Agreement they have to give suitable notice of what will be taken.

Do consider though although payment is taken on the 16th, its for the whole of that month. the month will be for 1st to Last - and not run from the 16th to the 16th.. So actual figures could vary quite a but..

The KFI document will shown an example of what the first payment would be based on an assumed dates. based on interest only from the date of advance to the end of the month you complete in and then full payment (Int + Rpt) for the next month.

This is why people often look to complete around the end of the month to try an minimise how much interest is due from the first broken month..

If you can budget for a double payment to start with as a 'worse case' scenario - then you wont be caught out and chances are have a bit spare after the payment has been taken out..

mossy

Thanks peeps. I popped in to the bank and they confirmed they take the payment on the 16th of each month. Thanks StuC75, I hadn't thought about the fact that it will be from the 1st to the end of each month.

They said that the cut off date was the 1st of each month. So on the 16th August we'll have to pay for July (from when we complete and get the mortgage advance) and all of August.

I appreciate you sharing your experiences and advice.

StuC75

No prob, I always plan worse case.. it can only be better then (one occaison where glass half empty pays off)..

mossy wrote: »

Thanks peeps. I popped in to the bank and they confirmed they take the payment on the 16th of each month. Thanks StuC75, I hadn't thought about the fact that it will be from the 1st to the end of each month.

They said that the cut off date was the 1st of each month. So on the 16th August we'll have to pay for July (from when we complete and get the mortgage advance) and all of August.

I appreciate you sharing your experiences and advice.