Calculating first mortgage payments

Twiglet12

TheCyclingProgrammer wrote: »

Thanks, that's useful. Our lender is Coventry building society. Maybe I will just give them a ring and find out.

We're with Leeds BS. Our mortgage offer says that proportionate interest will be calculated from release of funds (day before completion) to first monthly payment, and will be collected 14 days after completion. I'd give them a ring - you don't want a shock!

TheCyclingProgrammer

I will ring them. Thinking about this some more, I think this is what makes most sense:

Complete before 15th March:

* April payment plus interest from completion date to end of March, paid on 15 March
* First regular payment on 1 May

Complete after 15 March:

* Payment for April plus March interest due on 15 April
* First regular payment on 1 May

So in both cases, we will have one month without a payment, one with a bigger payment than normal and then our first regular payment.

Manichouse

I completed yesterday my first payment comes out on the 2nd Feb and then on the 1st each month thereafter.

getmore4less

TheCyclingProgrammer wrote: »

I can do that - things aren't tight, I just like to keep my budget as realistic as possible (I use the YNAB system and software).

Keep it simple, if you have the cash buffer do the detail retrospectively.

You are creating totally unnecessary work for yourself.

pinkteapot

Phone the lender when the completion date is confirmed. Once they know the date, they'll be able to tell you the dates of your first couple of payments and how much each will be. Don't worry about it until then if the money isn't super-tight.

Glad to hear your chain is moving again.