Nationwide First Mortgage Payment

Beestar

We're first time buyers (please be nice) and recently took out a mortgage with nationwide.

Our funds were released on 29/07/2016 and our completion date was 01/08/2016. We presumed our first payment would be taken on 01/09/2016 and would be slightly higher due to interest.

We had a payment deducted on 19/08/2016 which was slightly higher than usual which was fine but we have since had a normal payment deducted just 13 days later on 1st September for our normal mortgage amount.

Do Nationwide work on advance payments? It just seems a bit strange that we've had over double our usual mortgage amount taken in two separate payments when we've only lived in the property for 35 days.

Any help would be much appreciated

Thank you

wjr4

My illustration says payment in advance

Bonfire_Bride

Honestly? I would ring them to check. They will know more about it than anyone on this forum.

*~Zephyr~*

I've had a Nationwide mortgage for 18 months now and yes, they take the payment in advance.

Beestar

We phoned them there and they said that it is correct, they weren't overly helpful as I'm almost positive our letter we recieved said the first payment would be deducted on 1st September, but if they work in advance I guess that would explain it.

Thanks for the help, first lesson learned is to always have a double payment ready - just in case.

Bonfire_Bride

Beestar wrote: »

We phoned them there and they said that it is correct, they weren't overly helpful as I'm almost positive our letter we recieved said the first payment would be deducted on 1st September, but if they work in advance I guess that would explain it.

Thanks for the help, first lesson learned is to always have a double payment ready - just in case.

I will make sure we do the same too! Thanks.

kingstreet

Yep. In advance.

First payment about two weeks after completion and is one month, plus any accrued interest.

Then, first regular payment is on 1st of following month if you choose 1st as your regular payment date.

So you paid accrued interest from 29/7 to 31/8, plus a month for August in your first payment.

Then your first regular payment was 1st September as you requested 1st as your payment date.

Building societies and former building societies collect in advance. Clearing banks (NatWest, HSBC etc) collect in arrears.

Beestar

That explains everything perfectly! So much better than Nationwide explained on the phone.Thank you so much for that, makes perfect sense now

Pa_Ja

I too am at a similar uncertainty 're first payment despite the document advising.

I move into my property in 9th October. My payments are set to go out the first of the month.
When will my first and second payment be?
(I'm aware the first one will be higher)

Thanks