When is first mortgage payment made?

Lilhobo

Daft question, but assuming we get a mortgage offer and move to completion, when is the first mortgage payment due? Is it the day of completion? Or 1 month after that? As we're hoping to buy the property we rent I don't want to pay twice for one month iyswim?

kingstreet

Depends if your chosen lender collects in advance or in arrears and the size of the first payment will be determined by when in the month you complete.

shimano

If you complete around the payment date, does that minimise the first payment?

westv

I assumed all lenders collected in arrears starting in the month following completion but I guess I was wrong.

kingstreet

Building societies and former building societies collect in advance and clearing banks collect in arrears.

Completion proximity to the month-end means less accrued interest is added to the first payment.

Lilhobo

That's great thank you.

katty2010

I've got this exact same question, I've just emailed my broker and then saw this thread on here. I am completing tomorrow, we have asked for preferred payment date of the first, we've gone with leeds building society, do you think the first payment would come out on the 1st April, and would that be a full payment or just for these few days, or on the 1st May for a little more for the extra few days?