First monthly payment on mortgage

StuC75

The mortgage offer would shows how the payment would be based on an assumed completion date..

In any case you are only charged for the mortgage from when the funds are advanced, so you are only paying for whilst you own - unless you have a long time between exchange (when funds may be requested in time for completion)..

So if you have funds on the 10th, you pay from the 10th,, 28th, you pay from the 28th.. There isn't any extra charge, but the banks don't give a 'free grace'...

All that may vary is if the bank look to take the 1st amount early - this can happen if there might be a long time until the first payment is taken i.e.

If you completed the 28th January , but wanted payment taking on the 1st (say February)..

The DD wouldn't be setup in time for that payment, so the bank wouldn't want to wait until 1st March to take the 3 days of Jan, February and March Instalments, but would instead want to take the 3days+1month some point In February then start in march with normal payments..

whereas if you set dd for the 28th, then nothing would be taken in January, end of February would be 3days + feb, and then end of march..

kingstreet

Tumtitums wrote: »

well i was getting a bit suspicious as my mortgage payment plan didnt state what the first payment would be , thats what got me looking into this issue

As an example, Nationwide KFIs always illustrate a commencement date of 1st, to make the first payment look as big as possible, so as a broker you feel obliged to explain accrued interest to the client so they aren't scared to death.

Until the actual completion date, the only thing you can give is an example, as it will depend entirely on the actual date.

Tumtitums

another complication is that the estate agent has been harassing me to exchange but the solicitor doesnt want to until the day before completion. I think i will go with my solicitor and ignore the estate agent as i have confirmed the completion date several times to the agent and the bank have recieved the request for drawing down the money . My solicitor has said theres no problems with the completion date as well.

egoode

Tumtitums wrote: »

another complication is that the estate agent has been harassing me to exchange but the solicitor doesnt want to until the day before completion. I think i will go with my solicitor and ignore the estate agent as i have confirmed the completion date several times to the agent and the bank have recieved the request for drawing down the money . My solicitor has said theres no problems with the completion date as well.

It seems unusual to me your solicitor wants to delay exchange until just before completion usually they would recommend at least 2 weeks between exchange and completion. Additionally your vendor could pull out of the sale or increase the price until you have actually exchanged. If I was you I would be questioning your solicitor closely about why they aren't willing to exchange yet. If it's because they are still waiting on queries to be returned or searches to be completed then I would agree that makes sense but alarm bells would be ringing for me if they just said it will all be fine and there's no need to exchange any earlier.