First mortgage payment?

Jon_B_2

Completing on our new build on 30th September.

Mortgage with Nationwide - do any of you guys with experience think our first payment with be 1st October or 1st November?

Thanks.

marksoton

I can't help on the date but bear in mind the first payment is almost always more than the usual monthly repayment.

I know mine is when i complete with NW as lender.

*Kat*

Probably 1st November, they send out the amount that's required by post within 10 days after you move in (it says so on their phone line )

libf

Yer, the system won't pick you up quick enough for a 1st of October payment, I expect. That'll be a large first payment though!!

Enjoy your new home!

Jon_B_2

Well we will keep a whole months payment back from October for a double November payment then. Thanks for the advice!

GoldenShadow

With everyone saying it will be a massive 1st payment. I was under the impression that you only paid interest on the days you were in and not any capital if you moved in mid month?

We are completing on Fri 25th. So that would be 5 days x interest + October full payment all due 1st Nov...

We are with Natwest who take payments in arrears, not advance from what I gather, hence my understanding of the above.

ETA: Even if you do repay some capital, surely it will be pro rata'd anyway...

Contemptuous

GoldenShadow wrote: »

With everyone saying it will be a massive 1st payment. I was under the impression that you only paid interest on the days you were in and not any capital if you moved in mid month?

We are completing on Fri 25th. So that would be 5 days x interest + October full payment all due 1st Nov...

We are with Natwest who take payments in arrears, not advance from what I gather, hence my understanding of the above.

ETA: Even if you do repay some capital, surely it will be pro rata'd anyway...

You're right, you do just pay interest, but the OP has a whole month's worth of interest to pay compared to your five days so it will make for a much larger than usual payment.

kingstreet

First Payment

Nationwide is a building society, so it collects in advance. It won't be able to collect immediately, so the first payment will be debited around 15th October.

The first regular payment will then be debited on 1 November, if that is the chosen payment date.

Accrued Interest

This applies from the date the funds are drawn-down to the end of that month, so assuming a draw-down date of 29 September, there will be one day's accrued interest. First payment will therefore be a normal month's payment, plus one day.

The lender writes to confirm this immediately following completion.

Jon_B_2

kingstreet wrote: »

First Payment

Nationwide is a building society, so it collects in advance. It won't be able to collect immediately, so the first payment will be debited around 15th October.

The first regular payment will then be debited on 1 November, if that is the chosen payment date.

Accrued Interest

This applies from the date the funds are drawn-down to the end of that month, so assuming a draw-down date of 29 September, there will be one day's accrued interest. First payment will therefore be a normal month's payment, plus one day.

The lender writes to confirm this immediately following completion.

Thanks. Very helpful.

Is there a way I can work out roughly what a days accrued interest will be worth?

kingstreet

Mortgage amount x mortgage rate = annual interest.

Annual interest / 365 = daily interest.

Daily interest x number of days = accrued interest.

libf

Jon_B wrote: »

Thanks. Very helpful.

Is there a way I can work out roughly what a days accrued interest will be worth?

Interest rate / 365 * loan amount gives you the interest on the first day and then multiple by number of days for nearly the right amount in one sum. (Or keep adding the interest to the loan amount and work it out for each day if you want it exact.)