Planning for first payment

MortgageDuck

Good afternoon

My fiance and I are about to complete the purchase of our first house. Our solicitors have informed us that all the checks have been completed and documents received.

As I understand it, the only outstanding element is for them to take the deposit and stamp duty payments.

We have spoken to the vendors and intend to move on the 8th of February. According to our mortgage policy with barclays, our mortgage payments are to be taken on the 4th of the month.

I have been told by friends and colleagues that their first payment has been larger than their regular payments. With the costs of moving and purchasing various goods such as a fridge and washing machine, I just want to be as financially prepared as follows.

My question is, when will our first payment be taken and how will it be calculated. Will it be taken on the 4th of February, even though we aren't in the house? Or the 8th even though thats not the regular payment date? Or the 4th of March even though that's almost a month after we have moved in?

Thank you for any help you can provide, and apologies if it's a silly question... I am just really nervous ahead of such a big step and just want to be prepared.

gingercordial

Much as I hate to give a new poster the brush off, wouldn't this be something for you to call and ask Barclays? Only they can give you an accurate answer for your particular mortgage product and moving timeline.

Otherwise welcome to the boards!

csgohan4

only your lender will know these questions I'm afraid

MortgageDuck

Thanks for the welcome, and I understand.

I guess i was just hoping that someone could offer a simple language explanation of what comes next. Whilst applying for the mortgage, getting the various surveys and valuations and checks have all been fairly easy to understand and straightforward.... I have found that the process from this point is vague and kind-of "you're on your own". I will contac Barclays and see what they say.

Thanks for the help regardless

lee111s

To be safe, expect a double payment. Anything less and see it as as a bonus.

ST1991

I am not with Barclays, but my mortgage provider (Natwest) wrote to advise me of what my first payment would be ahead of them taking it out.

They actually only charged one month, and the pro-rata amount/interest was added to the mortgage amount. A bit of a weird way of doing it... but it made the first month easier. I called them in a panic when the first one came out lower than we thought, but they assured me it was fine.

Regardless, we had planned for 2 full monthly payments just in-case anything did go wrong. I would recommend doing the same and put away enough for 2 full months. Anything you have left over is a brucey bonus.

Out,_Vile_Jelly

It will depend on the date the mortgage officially starts compared to the date each month you've agreed to make repayments, and possibly if there are any random charges related to the product (eg account opening fee). The advice to budget for a possible double payment is sound.

The only essentials you really need are running water, a hob or microwave and a fridge (in this weather you could survive without the latter even). Don't be panicked into thinking you have to buy everything in the first month and that it must look like a show home immediately.

davidmcn

MortgageDuck wrote: »

My question is, when will our first payment be taken and how will it be calculated. Will it be taken on the 4th of February, even though we aren't in the house? Or the 8th even though thats not the regular payment date? Or the 4th of March even though that's almost a month after we have moved in?

It won't be before your lender knows that completion has taken place - so can't be before or on your completion date. In practice it takes some time for direct debits to be set up so they may well miss your normal payment date, so you can have a, say, seven week initial payment before your regular payment schedule. They will tell you though!

lottie3000

I'd expect about double the payment because of the time of the month you are completing. Once you complete on the house you will be able to speak to the mortgage company and they'll give you an actual figure.

MortgageDuck

Thank you all so much for the advice

I think we'll plan for the double payment as suggested and delay all but the essentials until after the first payment has gone through.

This is meant to be an exciting opportunity, but at this point, I'm filled mainly with nerves.

Thanks again

Gilead

Plan for a double payment. I purchased my first home and got the keys 1st May 2014. My first payment wasn't until 1st June - It wasn't a double payment but about two thirds more than what it normally would be. It may have been the capital repayment plus two months interest.

Your mortgage provider will be able to advise.