Help...Nationwide Mortgage!

fioney25

Hello,

My partner and I will be completing our first home move on Friday 29th May!

I've just received a text from Nationwide saying that our solicitor has arranged for "Mortgage Funds to be released on 28th May 2015."

Can any one tell me what this means?! or does this mean we start paying the mortgage on this date?


Thanks,

Fiona

PixelPound

your solicitor needs to pay for the house you are buying using the deposit you pay and the mortgage funds, so nationwide have said when they are putting the funds over

fioney25

Okay - this makes sense. We have arranged for our mortgage to be taken out the beginning of the month.

Will this begin from next month or the month after?

kingstreet

Nationwide collects in advance, so your first payment will be around the middle of June and will be a full month's payment plus interest from 21 May to 31 May on top.

Your regular payments will be on the date you requested on your application.

fioney25

Oh really? That's a little unfair considering were not in the house yet but I understand. Is this the same for every lender?

kingstreet

If you are completing on 29 May, you'll be in the house, or will have owned it at least for a couple of weeks by the time the first payment is made.

Accrued interest is charged from the date the funds are drawn-down (28th) to the end of that month, so the payments all balance out over the term of the mortgage.

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

Nationwide will confirm your first payment date and amount in writing soon after completion.