Do halifax still use advance payment for mortgage?

class2ldn

Hi guys, we are due to exchange this week with a collection date of 16th November (approx) but it could be earlier. Anyway I know our first payment takes into account the interest from 16th to months end so will our first payment come out around end of month and cover December? It works out about 1500ish I believe with the interest as we are paying 1126pm for our mortgage. I assume then from the end of December/Jan our first payment would revert to 1126.
Does that sound about right?
Is it still 14 days after completion the first payment comes out?

kingstreet

Yes. Halifax collects in advance.

Collection date? Did you mean completion date?

If so, first payment will be early December and will be a full month's payment plus accrued interest from the date the funds are drawn-down until the month end.

If the funds are given to your solicitor on 16 November, that's accrued interest of 14 days to end of November, plus a full month's payment taken in early December.

class2ldn

Yeah that's what I thought and yes I did mean completion lol.
Thanks

class2ldn

So is it 14 working days or normal days?
It looks like we may be completing on the 23rd of this month now so would the 1st payment be the 6th november or the 11th?
What would the payment date be after that as on our mortgage it says it ends on 30th of the month so i assume end of november to cover december and so on.
Tried to ring halifax but was told it was a 40 minute wait .

kingstreet

class2ldn wrote: »

So is it 14 working days or normal days?
It looks like we may be completing on the 23rd of this month now so would the 1st payment be the 6th november or the 11th?
What would the payment date be after that as on our mortgage it says it ends on 30th of the month so i assume end of november to cover december and so on.
Tried to ring halifax but was told it was a 40 minute wait .

14 days is 14 days. Interest still accrues at weekends.

I don't know when the first payment will be exactly. It's usually a couple of weeks after completion.

Read the guide that came with your mortgage offer. AFAIK it's mentioned in there. If none;-

http://www.halifax-intermediaries.co.uk/pdf/info-about-your-mortgage_10_.pdf

class2ldn

Ah it says its a month after the mortgage starts but if the funds are released within 4 days of your chosen payment date you would pay on the 10th of the next month so if we complete on 23rd then our first payment should be end of november as weve chosen end of the month. Spoke to them eventually and thats what they said aswell.

kingstreet

Yep. Horse's mouth is always best for specific issues with specific lenders.

Perhaps each mortgage lender should have a rep on here to do their dirty work for them as I'm getting fed up with fielding questions they should be answering as part of their "advice" process?

class2ldn

Well i did try them first but didnt fancy waiting 40 mins lol

kingstreet

You shouldn't have to.

They should cover stuff like this when you "buy" your mortgage. If I can be bothered to do it for every lender I might have to explain, surely they can do it for their one measly employer?

class2ldn

Well seems the information I got from Halifax when I spoke to them was wrong as they are taking £1360 on the 2nd November which I'm a bit annoyed about as we were told the end of the month. We only completed on the 23rd October. Obviously they are doing it in advance then.
Grr