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Post Office Mortgage - First Payment

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NewHomeOwner_2
NewHomeOwner_2 Posts: 62 Forumite
Fifth Anniversary 10 Posts Combo Breaker
edited 19 February 2016 at 12:25PM in Mortgages & endowments
I'm confused by my first mortgage payment.

Do you have to pay in advance as I was under the impression that mortgage payments were calculated in arrears...

Thanks!

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  • kingstreet
    kingstreet Posts: 39,258 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Yes, you are paying accrued interest from 7 August to 31 August, then you are paying capital & interest for the month of September.

    BoI uses the old Bristol & West system which collects in advance. Clearing banks collect in arrears.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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