First time buyer mortgage payment

heidi7191

Hi,
We are due to move in to our first home middle of September. Our mortgage is set to be taken out on 7th of every month. When would our first payment be?
Also, would we paya full month's mortgage and only be in the house for just over two weeks for that month? Or do they work it out from when we moved in?  

joanars

In October you should pay full month's mortgage plus the daily interest accrued in September from the day when the money are drawn-down. The first mortgage payment is usually 1.5x your usual amount, but of course every mortgage provider is different, you will receive letter explaining your monthly payments including the first one. 

For example, we completed on 28th February and our first mortgage payment was only few quid more than the normal monthly payment. 

kingstreet

It varies from lender to lender. Some collect in advance, others in arrears.
Advance
In many cases your first payment will be interest from 7 - 30 September, plus a full month's payment debited around the end of September with your first regular payment debited on 7 November. Your final payment is a month before the end of the mortgage term.
Arrears
However, with a clearing bank like NatWest or HSBC you may find you make your first payment on 7 October for a single month's payment only, with the final payment being made on the day your mortgage actually ends.

Competsoph

@kingstreet if the OP moved in say 15th of September, would they pay a single months payment for the month of October, for example 7th Oct-7th November and then pay any extra to cover 15th September to 7th October, at the end of the mortgage period, say if they fixed for 2 years? 

On re-reading your post I wonder if I’ve got this wrong. Why would you be required to pay for a full month, 15th September to 7th October if you haven’t been in the property for a full month? 🤔

I’m just trying to get my head around what payments will be made.