Exchanged, first mortgage payment

Jmbrown4150

Hi all,

Finally exchanged a couple of weeks ago now. I complete on Friday this week, 7th December. :beer:

My mortgage is with HSBC and wondering when the first payment will be. I heard it may not be until the 1st of Feb. ( although will be basically 2 payments, obviously minus the first week in December )

I guess HSBC will contact me but wondering if anyone would know the answer here!

Thanks
Justin

datlex

Your letter from the bank should confirm the date. My first payment was the month immediately after completion. So in my case I completed in June and 1st payment was due 1st July taken on 2nd due to weekend. I completed on 29th June (last working day of the month) to minimise size of first payment. Hence it was one month two days.

If I were you I would assume first payment to be 1st January (2nd due to bank holiday) and to be 1 month payment plus the payment to cover 7th to 31st December inclusive.

HampshireH

Completed on the 1st. Payment came out on 7th. I got a letter letting me know on the 10th.

Bank on it being taken just in case

pinkteapot

Phone HSBC's mortgage service centre and ask - phone number will be on any letters about the mortgage application you've had from them.

Not trying to be facetious. Lenders vary so you're best off asking them. They should be able to tell you when the first payment will be and how much it will be, and then how much the second payment onwards will be. First payment is often higher even if it's only a month's worth of capital repayment, because there are some extra days interest.

whatdoyouthink...

I completed on 8th Dec last year, my first mortgage payment (through Nationwide) was made on the 2nd Jan and was one month plus the 8th-31 Dec.

kingstreet

Building societies collect in advance, clearing banks in arrears.

HSBC I would expect to debit on 1 Feb and to debit the whole month of January plus accrued interest for 7 December to 31 December.

Nationwide I would expect to debit on 1 Jan and to debit the whole month of January plus accrued interest for 7 December to 31 December.

If you remain with each lender until the end of the term, your final payment to Nationwide would be a month before your final payment to HSBC.

As noted, the lender will write to you and confirm amount and date of first and subsequent payments once completion has taken place.