Mortgage first payment

kingstreet

True. But, IMHO, not seeking/providing advice should not mean lender employees are absolved from providing all the necessary information.

Fortunately, that's another thing which will hopefully end in April next year

chanz4

My broker didn't tell me, my solicitor told me what the payment would be no explanation from anyone else.

kingstreet

chanz4 wrote: »

My broker didn't tell me, my solicitor told me what the payment would be no explanation from anyone else.

That's poor. I do it when I go through the KFI. Nationwide, as an example, kindly adds a commencement date which shows nearly a doubled first payment, so it's very difficult to not explain it otherwise the borrower wonders what's going on.

StuC75

The mortgage being redeemed will include the 7 days interest in the redemption figure quoted for completion.

If you ticked for payment on the 1st of the month then on the 1st December you would pay 23/31's (give or take) of the monthly Interest Only element (no capital included), plus the regular full month payment..

Planning for Double payment this month is the best option, and will ensure something 'drop back'.. one time that 'worse case planning' really does pay off...

DilbertJones wrote: »

I complete 7th November, so I assume debit day will be around 1st December?

incidentally i have accounted for paying my whole existing mortgage & 100 % of my new mortgage this month so I should be ok, doubly so if the payment doesn't come out until the December 1st as I will be accruing my own interest on that money for that duration.

DilbertJones

StuC75 wrote: »

The mortgage being redeemed will include the 7 days interest in the redemption figure quoted for completion.

If you ticked for payment on the 1st of the month then on the 1st December you would pay 23/31's (give or take) of the monthly Interest Only element (no capital included), plus the regular full month payment..

Planning for Double payment this month is the best option, and will ensure something 'drop back'.. one time that 'worse case planning' really does pay off...

Thats great, thanks.

To surmise I have budgeted for my current mortgage circa £450 + my next mortgage circa £850 all to be paid this month. In fact my first mortgage goes out tomorrow.

If the payment date is indeed around the 1st then I will have retained the £850 from this months salary so if it is a double (near enough) payment on the 1st then I am good to go

StuC75

Had you waited till 1st November, then the payment in December would have been December Payment + 30 Days of Interest only.. Either way you pay from when the funds are forwarded regardless.. Its only the choice of payment date that has caught you out, the KFI you received at the start would have shown a hypothetical completion date with 1 pmt of XXX then however many payments at the YYY fixed rate amount, then reverting to a SVR of ZZZ for the remainder..

mr_cool wrote: »

My mortgage completed on 26th Oct, they have taken a payment on 1st Nov for initial interest + one full months payment. Is this correct? I thought it would been on 1st Dec. Or just the intial interest now, then start monthly payments in Dec. How can they take payment for a month that hasn't accrued yet? Surely it works in arrears?

I could have waited till 1st Nov then would have only had a months payment on 1st Dec., seems silly.. Shouldn't they have told me this?

HBOS only wrote a few days ago with the initial payment date and amount!

StuC75

without knowing the exact details of your circumstances and timings of payments to old & new, the fact u budgeted for both is good. The lender ought to have written giving ample notice of what and when funds will be taken.. some can take interim payments if it would have resulted in too long until the first payment or would have resulted in too much a payment being due..

In my case I left the extra funds in the account for a good month or two so that I knew all had settled down...

If by first mortgage going out tomorrow you mean the lower £450 one then you need to check that's included on the settlement figure that is paid for completion - it they haven't credited by then its something they will refund after the event..

I assume the £850 is the newer mortgage including repayment? If so work out what the interest only element of that is as you would be charged 23/30's of that in December along with the normal £850 amount..

DilbertJones wrote: »

Thats great, thanks.

To surmise I have budgeted for my current mortgage circa £450 + my next mortgage circa £850 all to be paid this month. In fact my first mortgage goes out tomorrow.

If the payment date is indeed around the 1st then I will have retained the £850 from this months salary so if it is a double (near enough) payment on the 1st then I am good to go

DilbertJones

StuC75 wrote: »

If by first mortgage going out tomorrow you mean the lower £450 one then you need to check that's included on the settlement figure that is paid for completion - it they haven't credited by then its something they will refund after the event..

I assume the £850 is the newer mortgage including repayment? If so work out what the interest only element of that is as you would be charged 23/30's of that in December along with the normal £850 amount..

Yes the £450 one is going out tomorrow, I will keep an eye out to make sure that this is accounted for on the completion.

The £850 is a repayment mortgage & does include interest, on a normal month.

Thanks for your help & advice

kingstreet

I suspect if you are completing on Thursday, your last payment will be assumed to have been made already and you'll end up having a payment made on 5th refunded.

You need to ask your solicitor what the redemption statement's assumed last payment is.

Also, check with NatWest, as I'm pretty sure they collect in arrears, so you'll pay nothing in December.

mr_cool

StuC75 wrote: »

Had you waited till 1st November, then the payment in December would have been December Payment + 30 Days of Interest only.. Either way you pay from when the funds are forwarded regardless.. Its only the choice of payment date that has caught you out, the KFI you received at the start would have shown a hypothetical completion date with 1 pmt of XXX then however many payments at the YYY fixed rate amount, then reverting to a SVR of ZZZ for the remainder..

Thats correct it showed a example amount, just not the date it came out.

So if I waited till 1st are you saying the Dec 1st payment wouldn't just be a standard monthly payment would be larger?