Halifax Mortgage First Payment

pinksoda

Hi all, hoping someone in the know can assist.

I am due to complete on my mortgage on 31st October and just trying to figure out or guesstimate when my first mortgage payment will actually be.

I have read through the mortgage offer and it sort of makes sense but I am struggling to apply to my circumstances as my mortgage offer gives and example of me completing on the 16th of the month (648.86 is the initial monthly payment and 447.08 is my regular monthly payment, I have chose the 28th of the month for it to usually debit).

I have also read somewhere the the initial interest is payable 14days after the mortgage advance is drawn down by the solicitor. Is this correct?

So if I complete on the 31st October - what will I have to pay and when?

Thanks in advance!

pinksoda

I should add the mortgage is with the Halifax.

Yorkie1

Interest will be charged by the lender from the day the funds are drawn down by the solicitor (probably about 29 Oct) - there isn't an interest free period as you describe.

I don't know enough to answer the actual query about whether your payment at the end of November will be 29 Oct - end Nov, or 29 Oct - end Dec (i.e. payment in advance).

House.buyer.sarah

We agreed payment date of the 1st of the month .
Completed on house April 30th
First payment left account 1st June this was with halifax . We did revieve letter prior to first payment confirming date and total amount due out , it was a higher payment than my normal monthly payments I think around 50% more ;( but then normal after that so be prepared for large first payment x

pinksoda

Thank you both ��

chanz4

I completed on the 16th, myn was taken on the 1st

SuperSaver123

chanz4 wrote: »

I completed on the 16th, myn was taken on the 1st

1st of the following month? Then the payment must have been lower than the usual one surely as you only had interest for 15-16 days (depending on when your solicitor drew the funds)?

kingstreet

SuperSaver123 wrote: »

1st of the following month? Then the payment must have been lower than the usual one surely as you only had interest for 15-16 days (depending on when your solicitor drew the funds)?

Accrued interest from 16 to 30 or 31, then a full month's payment for the following month as payments are due in advance.

Taken on 1st of month following month of completion as completion took place more than two weeks from month-end.

SuperSaver123

Ah, ok, makes sense now. So it is best to complete right towards the end or beginning of the month.

kingstreet

At the end of the month.

However, you only pay interest for the days you actually owe the money, so presumably, you get a few more days living in your new home in return...