Nationwide repayment help

[Deleted User]

Hi,

I am Remortgaging from Natwest to nationwide, (hopefully) my Natwest payments are the 28th Month and cover interest from 25th - 24th of the previous month.

Looking at the Nationwide documents, if i complete say the 28th August, the first months DD will be taken on the 1st September in advance? So I will need to pay Natwest on the 28th August for the prior month and then 1st September for the Nationwide payment :eek:

I won't physically be able to pay both! And another thing the first payment they have quoted is £990 if completion is done by 1st then subsequent payments are £633. I don't understand that at all. Do they charge interest from completion or from earlier?

kingstreet

You are going from a lender which charges in arrears from one which charges in advance.

If you are completing towards the end of the month, the settlement figure from NatWest is likely to assume your last payment was the month earlier, so you may wish to cancel your direct debit to prevent another payment being taken when your remortgage is completing.

The interest starts on your new mortgage on the day the funds are drawn-down by your solicitor, so the first payment will be a month, plus the interest from then to the end of that month. Nationwide illustrates completion on 1st of month on KFIs to make it look as bad as possible. if you complete close to month-end you will have a full month's payment, plus a few days interest around two weeks after completion and your first regular payment will be on the date you have requested in the following month.

Your first and second payments would then be only a few weeks apart if, for example, you have nominated 1st of each month as your regular payment date.

[Deleted User]

Thanks Kingstreet, my redemption figure for my current mortgage may be £300 ish over what i'm borrowing from Nationwide IF I complete before the 25th, I assume I pay the difference over to the solicitors when asked, if it's after the DD is taken I think it'll be the other way around.

So confusing.