Interest added to first mortgage payment

HandyToes

Apologies if this has been posted before but I can't find it!!

We are first time buyers buying a new build which should be ready by Spring next year. We have been offered a mortgage with Halifax which shows that our first monthly repayment will be approx £400 more than the the rest of the months. When I asked my mortgage broker what this means they said

"Halifax have confirmed that the first payment is always greater due
to the interest accumulated between time the offer is issued to mortgage completing"

She confirmed that the date is was offered was the 11th June. Therefore am I right to assume that we are being charged interest on money that we haven't drawn down yet and won't do until completion which at the earliest will be late December this year?

If so, how is it right that I can be charged interest on money that hasn't yet been given to me?
Hope someone can explain in simple terms what this all means and whether this is allowed!
TIA

amnblog

No, you are not right to assume you are being charged interest on funds you have not yet drawdown, you are not charged any interest before you get the money.

When you do drawdown the funds the Lender will charge interest from that point. For the first payment they will take a months standard payment and add the charge for interest from the date you take the funds, to the end of that month.

When you get a Mortgage illustration or offer it will assume a drawdown date which may of course be earlier or later in the month than when you do take the funds. Therefore the first payment figure is only a guesstimate and cannot be relied on.

HandyToes

Thanks for getting back to me do quickly.

Why is the interest £400? I don't understand that bit!

BoGoF

Nobody can answer that without knowing how much you are borrowing and the interest rate.

As has been said it's an illustration so no point trying to do the calculation until the funds are drawn.