First Payment - is this correct?

Cameron1590_2

Hi All

I have a HSBC mortgage. Completed on the 05/07/19. Repayment date is the 2nd of every month.

Just had a letter in the post from HSBC to advise that my first payment will be the 02/08/19 and will be my normal month repayment amount of £580. It then shows the following month payment as also being £580.

I’m use to paying a higher amount in the first month due to the interest being charged after completion. I thought I would of had a big charge with this one after having a whole month before my first payment.

Does this sound correct?

Thanks

kingstreet

Clearing banks charge in arrears.

Building societies and former building societies charge in advance.

Hence the difference.

[Deleted User]

HSBC will take the first payment on time as long as there is 28 days between completion and first payment date.

If you had completed on the 6th it would have been completely different and they would have taken a much higher payment on 2nd September

The bit about building societies and banks is correct but even within that they have different approaches with some doing a part payment midway through the month or some just waiting for nearly 2 months for the first payment