First mortagage repayment?

beachlou

Hello,


We're completing on our house Friday 27th June and wondered when our first payment is likely to be? We've asked for payment to go out on the 1st of the month. Is it likely to by July, or August?


On our mortgage papers it says the first payment will be £915, though our monthly repayments are £650. Am I right in thinking if our first payment is on 1st July, is it likely that it will only be £650 + 3 days interest and therefore a lot lower than the £915 quoted?


Thank you.

TBagpuss

Your lender would be the one to ask. They should be able to tell you how quickly they normally set up the mortgage and the payments, and whether they are likely to be able to do so between 27th and 1st.

They may get it set up in time for 1st July, but I wouldn't count on it. On your papers, what date does it have for the start date? As I recall, on mine, the date (and therefore the estimated first payment) was on the paperwork long before we'd agreed a completion date so it was really only an illustration.

And yes, if they can set it up for 1st July then it would normally be your normal payment plus the extra 6 days.

lee111s

I think they need 14 days to set up the DD from when they release the funds to when the first payment is taken. So payment will probably be around the 9th/10th and for a full payment plus 14 days interest.

You need to speak to the lender though.

RickyC_IFSWP

beachlou wrote: »

Hello,


We're completing on our house Friday 27th June and wondered when our first payment is likely to be? We've asked for payment to go out on the 1st of the month. Is it likely to by July, or August?


On our mortgage papers it says the first payment will be £915, though our monthly repayments are £650. Am I right in thinking if our first payment is on 1st July, is it likely that it will only be £650 + 3 days interest and therefore a lot lower than the £915 quoted?


Thank you.

You should receive a direct debit schedule of mortgage payments, and it should say when first payment is taken. As others have mentioned, best bet is to call up your mortgage company and get the information directly. Congrats on the property purchase!

Paully232000

You would have to ask your lender to get a definitive answer but we completed and moved on the 25th Oct last year and our first payment was on 7th November (for a month and a bit mortgage payment) and then on or around the first of the month from December. for a lower and normal monthly payment.

hop3y

I'm in the same boat!

Completing next Friday the 20th and my mortgage payments are set at the 28th. I presume mine will come out the 28th of July, not June but might ring them to check.

kingstreet

First thing, building societies and former building societies collect in advance, so your first payment is due on the date of completion. However, this isn't practical, so it is normally a couple of weeks later.

If you complete on 27 June, your first payment will be a month's payment, plus accrued interest from the date the funds were drawndown, until that month-end.

So, let's say drawdown date was 26 June, that means four days interest will be added to the first payment and that will be debited around 12th to 14th of July, with the first regular payment on 1 August.

Clearing banks collect in arrears, so you would normally see your first payment taken at the end of July, including the accrued interest, with your first regular payment at the beginning of September.

Take no notice of what's on the key facts illustration, as that will be an assumed completion date and only the actual completion date will determine the amount due and the due date.

Your lender will confirm, just after completion, but you need to ask your lender how it works, as you cannot guarantee anyone else's experience will be the same as yours.

gregpot2000

I completed on the 25th April. My first mortgage payment was around 28th May.

it was £389, my normal payment will be £331