First mortgage payment - Santander

SuboJvR

Hi all,

I've searched but haven't found an answer on this one as yet so I was hoping someone could give me an idea based on recent experience.

Essentially - do Santander take money in advance, or in arrears?

There are some suggestions that banks are in arrears, and building societies in advance. But former building societies may be in advance. And I'm not sure what category Santander falls into!!

We are currently renting and I anticipate an overlap period of between 4-6 weeks as we will give notice on our current property when we get the two weeks' notice from the builder (new build).

We have a mortgage offer from Santander and all being well will follow this through to completion. We have requested our payment date to be the 1st of the month.

For example let's say we complete on the 2nd of September. When will Satander take payment, and what will this be for?

If we complete on say the 18th of September (i.e. less than 2 weeks until the 1st October), would this change what they would take?

The terms leaflet from Santander is very vague - it only says they will write to us to inform us of the first payment date.

I'm hoping we will pay our final rent payment from one salary payment (e.g. in the example, August payday end of the month), and the mortgage + interest from the next (September). Or would it only be the second month's salary (October payday) instead covering two months' (September + October) worth in the new house?

Affordability isn't a problem but I would just like to have it clear in my head and ensure the right money is in the right account at the right time.

Is there a chance we will be needing to pay double (i.e. rent and mortgage) in the first month using August's payday, with Santander?

I hope that makes sense.

myhouse_2

Most sensible thing to do would be to phone up and ask them.
From experience my first mortgage payment was paid more than a month after the purchase date and was a little higher than the normal monthly fee to compensate. That was a bank but not Santander though it seems sensible since most people can't throw money at a house then pay a monthly fee straight away.
You may find they are flexible on the first payment.

surreysaver

My mortgage is with Santander (although taken out when it was still Abbey National), and my first payment was more than a month after completion, so was higher than a normal month's payment as it had about 5 weeks' interest included.

worried_jim

surreysaver wrote: »

My mortgage is with Santander (although taken out when it was still Abbey National), and my first payment was more than a month after completion, so was higher than a normal month's payment as it had about 5 weeks' interest included.

Same for me, although 14 years ago so things may have changed now.

Toonsy

I'd echo the above. I'm not with Santander but had the same kind of question myself recently as my old mortgage was paid on the 1st of the month every month but when I remortgaged to Tesco the old mortgage was redeemed on the 31st with Tesco instructed to take my new mortgage on the 1st.

That was this month just gone. I got told by solicitor to cancel DD to Northern Rock on 31st so my payment dudbt go on the 1st August and Tesco have since written to me to say their first payment will be 1st September albeit a slightly higher amount for one month before reverting to 'normal"

htaylor16

I've just completed with Halifax. We completed on 16th July, first payment ;which is higher) is being taken out on 10th and then second payment on the 1st September. So two massive payments in a month, it's really screwed yes uk because we weren't expecting (or budgeted) for it, expecting it to be taken out in September. So I would ring the bank and ask.

htaylor16

Sorry that should say completed on the 27th July

MisterP123

I can echo the above. I'm with Santander. Completed late May, first payment came out beginning of July. Again, slightly higher as there was 5-6 weeks of interest to be paid.

SuboJvR

MisterP123 wrote: »

I can echo the above. I'm with Santander. Completed late May, first payment came out beginning of July. Again, slightly higher as there was 5-6 weeks of interest to be paid.

So in your case you paid a full normal monthly mortgage payment on the 1st July, plus the interest from late May until 1st July? You didn't pay on 1st of July for mortgage June + July, plus interest from late May to 1st July?

Hope that makes sense! Aaagh so confusing.

Thanks all for the help so far! Eases my mind

wantonnoodle

We completed with the West Brom (which is still a mutual BS) in February, and our first mortgage payment was exactly 1 calendar month following completion. Their policy is for first payment to be within 30 days of completion. After that, you can change the date of payment, providing there is one payment in every calendar month (so for example you can't pay first payment on 31st July, then phone in August to change payment date to 2nd of the month, as this would mean no payment would be made in August).

The first payment was slightly higher than our regular payment, given it included interest covering the period since completion.

SuboJvR

Thankyou for the reply.

It's all sounding like we will be paying rent up front, as always, for our last month, and then the mortgage payment should be either toward the end of that period or even later meaning hopefully not needing to dip further into savings to cover the overlap.