First payment of new deal question

Jhoney_2

Hi all,

My fixed deal ends at the start of next month and I have a new deal pending. However, the lender advised that they would still take a payment at the previous rate in May, as they take payments in arrears. Is that correct?

I cannot check paperwork atm - as decorating, so not accessible - but fairly sure I paid a higher than mortgage payment at the start of the deal about to expire. E.g x amount leading to pay date + 1 month.

If they are correct, when is the best payment date to avoid them getting more interest out of me than is necessary?

Hope that makes sense.

JH
Thanks

Foxy-Stoat_3

It is correct. The new deal may well of been worked out assuming that the next payment would of been made. You may find that your mortgage account will be credited with an amount of overpaid interest.

You probably paid the first payment plus arrangement fee at the start of the existing deal.

Jhoney_2

Foxy-Stoat wrote: »

It is correct. The new deal may well of been worked out assuming that the next payment would of been made. You may find that your mortgage account will be credited with an amount of overpaid interest.

You probably paid the first payment plus arrangement fee at the start of the existing deal.

Thanks for reply FS.:)

My payment date (which they asked me to choose at the start of deal) was the 1st. The deal expires on the 3rd. The arrangement fee was paid by cheque and returned with the paperwork. Not sure whether that changes things?

If the arrears info was correct, that's perfectly fine then.

Is there a good date to avoid paying extra interest? For example, Is 28th better than 1st? I picked the latter thinking I was minimising that.:D