Mortgage first payment

laurab2170

I am in the process of moving house, we were about to exchange last week but that has been delayed due to problems. I have been sent information about my first payment as my solicitor had got to the stage of requesting the funds from the bank (Woolwich) on 20th August. He sent the money back a day or 2 later when we realised we were not going to exchange. Anyway, in this letter it has details of the first payment which includes part interest payment for August, it seems to be more than the actual repayments, I can't find any information about these charges in my terms, they all seem to be once the mortgage is in place. This payment seems to just be interest, I'm not sure if this goes towards my mortgage payment or is it just to cover the banks lost interest while the money is in my solicitors account? This seems unfair as he is the one earning interest from this money until we complete. But like I said the money has actually been sent back, I just don't want to be paying for other people's benefit really, can anyone help explain please?

amnblog

You would pay the lender interest on the period from when the money went out until the end of that month.

getmore4less

Is your mortgage you pay the interest on the money,

if you don't have it then you need to talk to the people that have(your solicitor) if you want them to return their benefit from your money.


If you want help with what Barclays have told you will need o give the details of the mortgage and what hey have said the payments will be.

You accumulate interest daily as soon as you draw down the funds, that will be one of the main terms in the offer, most if not all Barclays mortgages interest daily, compounded monthly(gets added to the debt).

Goldiegirl

This sounds like a 'delayed completion' situation.


The solicitor may have requested the funds, telling the lender that the mortgage was going to complete on a certain date.


When that date arrived, the lender assumed that the mortgage had completed, and sent out their letter asking for the first payment.


However, now that the funds have been sent back to them, it is more than likely that their letter is invalid. I'd check with the lender, make sure the funds have been returned ok, and that you don't have to make the payments detailed in the letter


When you eventually complete the mortgage, you'll get another letter, giving details of the revised 1st payment.


If you complete on 4th Sept for example, you can expect to pay the interest on the mortgage from 4th -30th Sept, and then your first regular monthly payment would be in October.