mortgage payments starting before house is built

dutluk2001

Recently put a deposit down on a new house and have all the mortgage stuff going through.

Today i receive my mortgage offer and i notice that my first payment is going to be taken on the 1st of every month starting September 2014, however the house isn't due to be completed until November. Is this normal? seems abit weird that im going to be paying for a house that isn't yet built, especially when im currently in rented and will be paying rent at the same time.

any advice will be appreciated

dotdash79

You only start paying your mortgage after you drawdown the funds, the bank makes an assumption that you will drawdown the funds at certain date.

the bank have assumed that you will drawdown the funds at a date before the 1st September.

dutluk2001

I'm due to complete all the paper work with my solicitor end of this week/ start of next, and from what ive been told at this point the fund will be transferred from bank to solicitor? its all gone through so quick just wasn't expecting to start paying before the house was built.

it isnt a major problem if i have to its just anyone ive mentioned it to has questioned it. what happens if problems occur before its built but after its been paid for ect ect

or worse case scenario the company went bust or anything like that?

would i then be left with huge debt repayments and nothing to show?

maybe a little over the top but its what people are asking me

Thrugelmir

dutluk2001 wrote: »

I'm due to complete all the paper work with my solicitor end of this week/ start of next, and from what ive been told at this point the fund will be transferred from bank to solicitor?

You won't complete on the purchase until the house is ready for occupation.

kingstreet

dutluk2001 wrote: »

Today i receive my mortgage offer and i notice that my first payment is going to be taken on the 1st of every month starting September 2014

It's just an example completion date to demonstrate the higher first payment due to accrued interest.

You can't complete until the property is finished and your mortgage can't start until it completes.

Just ignore it.