Confused about dates and payments on remortgage..

ferry

Hi all
I hope someone can advise us please.
My current deal with my existing lender ends on the 30th June.We have remortgaged with a new lender but in their offer letter which we sign and return it states figures as if the remortgage starts from 1st August,with a much larger sum due with the new lender on the 1st August(1st repayment)-
is this correct as there seems to be a month missing or do we..

1.Move onto a SVR with our existing lender for a month until new lender kicks in..?
or
2.No payment is taken by anyone on 1st July hence larger payment due on 1st Aug by new lender..

or

3. Theres a mistake in the dates?

Thanks for the advice as usual..

Terry

Madjock

The start date of 1st August is an example, and your first payment will vary depending on when you complete and when your new lender normally takes the payment. The date is on there so that the lender can give an idea of what your 1st payment will be. If you check the offer the subsequent payments are probably much lower.

ferry

Thanks for the response,but I'm still slightly confused.
I've just checked with my new lender- the C&G and they do intend to take 1st payment on 1st August for a larger amount to cover interest from when the loan starts (1st July).And quite right subsequent payments are smaller.

I'm expecting to complete my remortgage with my current lender at the end of June so in view of that it appears there will be no payment made on the 1st July..?

Or have I still misunderstood...

Thanks for the ongoing assistance on this..

terry

ferry

Any thoughts/ advice here please,....cant get hold of my mortgage advisor at the moment.

Many thanks

Madjock

i can't recall how C&G work with their first payments, i will consult my little pink book at work tomorrow, though you may be able to find out from your broker by then anyway

Madjock

looking at the info I have here, C&G works like this:

If you complete before the 24th of the month, the first payment will be on the 15th of the following month. i.e. complete 10th June, 1st payment will be 15th July.

If you complete after the 24th of the month, the first payment will be on the 15th of the 2nd month following completion. i.e. complete 25th June, 1st payment will be 15th August, but it will be a big one.

I would double check with the lender or your broker.

ferry

Hi MadJock for getting back,just waiting to hear back.

Regards
Terry