Initial mortgage payment higher

looknohands

ACG wrote: »

It depends on the lender, your payment date and the completion date.

I would assume that your first payment includes interest from the date you complete(d) until the 1st of the month (assuming your first payment is the 1st) + your first months payment....If that makes sense?

It just says this payment breakdown assumes the loan will commence on 1st February 2016. I haven't even exchanged contracts, so don't have any dates. Just wanted to know what I'm paying for, I'll contact my broker and ask.

I'm planning on overpaying as well on this first payment, assume this will be treated as a regular overpayment and not subject to additional fees?

kingstreet

looknohands wrote: »

It just says this payment breakdown assumes the loan will commence on 1st February 2016. I haven't even exchanged contracts, so don't have any dates. Just wanted to know what I'm paying for, I'll contact my broker and ask

It's just an example.

It's showing the highest possible accrued interest, which applies from the date the funds are drawn-down to the end of that month. Its exactly what I said about Nationwide four posts back. It makes the worst possible scenario by exampling 1st of month completion.

If you complete later in the month, there will be less accrued interest as a result.

Thrugelmir

Goldiegirl wrote: »

But you can't really blame them for that, as the first they may know of the completion date is when the funds are requested for completion, a couple of days before the event

How is the lender supposed to know when completion is going to take place. Not a practical option to provide actual precise information.