Nationwide first mortgage payment

firsttimebuy1

Hi,

We have had messages from Nationwide saying funds will be released Tuesday 1st October as we are completing on 2nd October, I know you get a letter come through stating what your first payment will be and the date it will be taken. We will be on holiday when this comes through so just wondering if we would be able to ring Nationwide tomorrow to find this information out instead of waiting until we get back from holiday to see the letter. Were just trying to work out our money and how much to put away for the payment etc.

Also, on our mortgage illustration it said that if we completed on the 1st of the month our first payment including interest would be about £1170, as we are completing on the 2nd of the month will this be a day of interest lower?
And one last thing, if completing right at the start of the month will they take a payment around 2 weeks after completion or will our first payment be 1st November as they said payment will be taken 1st of every month.

First time buyers so dont know how any of this worked and so many different things online with alot possibly out dated.

Thank you!

Mortgage_Expert

Hi firsttimebuy1, Your first mortgage payment will likely be the 1st November, consisting of the mortgage payment for the part month of October (which in this case is the whole of October, but the DD won't have been set up in time for the payment to be taken), + your standard mortgage payment for November. This will be a large payment; around double the normal amount. However, all said, you should call Nationwide to confirm, and in any event you need to make sure you have plenty of cash in your nominated account to make sure your initial payment is covered. I actually had a client some years back in a situation like yours. I told them, in writing, that their first payment would be in 58 days and would be about double the normal amount. They didn't take heed and plan for the payment. Instead, they elected to spend their remaining cash on a large house-warming party. This left them short of money for their first mortgage payment, requiring intervention from Bank of Mum and Dad! I am pleased you are sensitive to this matter because you need to make sure you are fully aware of how much money you need, and when. I hope this helps.

firsttimebuy1

Thank you ! We thought this might be the case, we have both put In equal parts this payday morning to ensure it would cover a possible double payment.

We have spoken to nationwide this morning who have assured us will be November the payment comes out and it will just be interest from the date the funds were released to end of month + a normal mortgage payment which is absolutely fine because that means we have another payday before it comes out. ( we wont be touching the money we've already put in the joint account this morning though) as wed rather have the extra in there incase other things pop up! So it wont be going towards a house warming party fund!

Mortgage_Expert

Hi firsttimebuy1, good to hear you have the facts established and a plan in place. So many people don't plan for their first mortgage payment. All the best in your new home.