First mortgage payment

charliegibbs

My wife and I are due to complete on our first house purchase this Friday (24th). We are trying to work out how much our first mortgage payment will be. Am I right in thinking the following;

If we set our payment date as the 26th of the month the first payment will come out on the 26th April which will be our standard payment (around £850) plus the daily interest from 24th March - 26th April?

kingstreet

It varies from lender to lender, some collect in advance others in arrears.

Many take the first payment on a different date to your preferred collection date, which will be used for the first regular and subsequent payments.

Ask your broker/lender.

wantonnoodle

We completed on our house on the 24th February. Our lender (the West Brom) are taking the first payment on the 24th March as their policy is to take the first payment 1 calendar month after the completion date. After that, we have the option to change the date of our payment providing at least one payment is made in any one calendar month. As my partner gets paid the 22nd of the month, and I get paid the 25th, we are intending to change our payment to somewhere around the 27th, to avoid any problems as we pay the bills from a different account to where our salaries are paid.

I know all lenders are different but hope this gives you an idea of what a lender may do. From talking to colleagues at work, I believe the Bank of Ireland do something similar to the West Brom but not 100% sure.