Mortgage first monthly payment query

LG4455

Hi all,

We are going with Halifax for our mortgage, our normal payment to be circa £850pcm, the documentation with the offer says that our first monthly payment will be around £1375.



We complete on the 27th of June and have requested the monthly direct debit for the 1st of the month. Does anyone have any experience of how they will work it?


They have said they will write to us within 10 days of completion to advise us of the payment date but I would just like to be prepared and budget for it.


Will it likely fall on a random day in July or will they wait and take the payment August 1st?


Thanks!


Lauren

muhandis

Going by what Halifax say about the 1st payment, I would think a random day in July. In your place I would make sure there are enough funds from July 1.

Given that 1st July is just 2 working days after completion, I doubt the DD will be collected that promptly.

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• We’ll collect your first payment by direct debit in the month after your mortgage starts.
• The first payment is usually higher than the rest of your monthly payments. This is because it includes interest charges from the day we issue the loan
money to the end of the month, plus the first full monthly payment.
• We may collect it on a different day of the month to the one you have chosen as your monthly payment day.

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LG4455 wrote: »

Hi all,

We are going with Halifax for our mortgage, our normal payment to be circa £850pcm, the documentation with the offer says that our first monthly payment will be around £1375.

We complete on the 27th of June and have requested the monthly direct debit for the 1st of the month. Does anyone have any experience of how they will work it?

They have said they will write to us within 10 days of completion to advise us of the payment date but I would just like to be prepared and budget for it.

Will it likely fall on a random day in July or will they wait and take the payment August 1st?

Thanks!

Lauren

kingstreet

https://www.halifax-intermediaries.co.uk/pdf/info-about-your-mortgage_10_.pdf

See page 9.

kingstreet

LG4455 wrote: »

the documentation with the offer says that our first monthly payment will be around £1375

Are you sure it doesn't say that would be the estimated monthly payment if completion is assumed to take place on 1st of the month?

If you complete on 27th you will pay a full month, plus three days interest to the end of June.

LG4455

Thanks, much appreciated.


No it says first payment £1377 followed by £850 for X months.



I guess will just wait until I get the letter, have budgeted for it to be in July anyway.