First Mortgage Payment Help!

tbarson1

Hi Everyone,

I am due to complete on a new house on the 30th May 2014 (Help to Buy). The mortgage is with Santander (Abbey), and I was just wandering what date the first mortgage payment is due most likely? I am currently renting so I think there is going to be an overlap!

Let_Us_See

Simply ask Santander.

tbarson1

Well obviously that's an option but I thought get a general view before I do so. Our mortgage is going through the process currently.

TBagpuss

When I was buying the mortgage company asked me (when we were filling in the papers work) which day I would like my DD to go out.

If you were not asked then I would guess that 1st of the month is most likely. However, if you are moving on 30th they May well not not have the account set up to take a first payment on 1st May so you may find your first payment is 1st June.

Also check your mortgage offer. As I recall, mine said on it when the first payment would be. Admittedly it was assuming that the move was immediately after the offer was made but it showed which day of the month it would be.

But asking Santander is the quesckest and most accurate way. They should also be able to tell you how much the first payment will be.

**EDITED** to add - got the months wrong - yes, if you move 30th May, your first payment would likely be 1st July, not 1st June

Mortgage_Mark_2

It's usually unlikely that you'll have a payment in the first month of moving, and in the above example if you set your payment date as 1st of the month then you'd not pay your first payment until July 1st.

Leon_W

It depends on which day you complete relative to your DD day.


If you complete say a week before the DD is due then it's unlikely it'll be taken and the following months payment will be larger to take into account the extra week.


If you complete a couple of weeks before the due DD date it is then more likely the lender will take a payment, but this is usually smaller than the contracted amount. It will then revert to the contracted amount the following month.

kingstreet

It also depends on how the lender collects.

Clearing banks collect in arrears, building societies collect in advance.

Only the actual lender can confirm its policy.

Eviesmummy

Please let us know when you find out, my mortgage is with Santander so a heads up on their policy would be useful.

tbarson1

Thanks everyone!