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First Mortgage Payment
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flubber
Posts: 4 Newbie
Hi just a quick query. Had my mortgage offer through today and the first payment is huge! The broker says it is to do with interest as the Mortgage company are presuming we settle in 14 days (which we are not) apparently its how they do it.
My question is does the day you sign contracts/start the mortgage have a bearing on the first payment. Am guessing if they are presuming we start in 14 days then they are charging us for the interest so far this month. Obviously the mortgage isn't properly in place yet.
So basically just wondering about the best start date and whether you can actually choose this or does it all depend on the solicitors etc?
TIA.
My question is does the day you sign contracts/start the mortgage have a bearing on the first payment. Am guessing if they are presuming we start in 14 days then they are charging us for the interest so far this month. Obviously the mortgage isn't properly in place yet.
So basically just wondering about the best start date and whether you can actually choose this or does it all depend on the solicitors etc?
TIA.
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Comments
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It is based on the date of completion, thus the day they actually give you the money...if you complete mid month, your first payment might be for a full month plus that part month, so could be quite big!
The mortgage offer is only an illustration though because your final bill will be based on your actual completion date so will probably change as your dates move around. (as far as I am aware...just remortgaged a rental property and that's how they did it with me)The only thing to do with good advice is to pass it on. It is never of any use to oneself. (Oscar Wilde);)0 -
Thanks. Been looking around and it seems its better to complete towards the end of the month. Something about if you move in mid or start then your mortgage payment isn't collected till the following month but you still have to pay the Interest. The whole thing is a mind field. :eek:0
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Are you also paying the arrangement fee in the first month's payment?0
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