First Mortgage Payment

simk6

Hi Everyone,
So myself and my fiance have a completion date of the 30th, we have set up our payment date via DD for the 1st of the month. When do you think our first DD will come off and how much do you think this will be if our monthly DD will be £682.40 with an interest rate of 4.38%?

I'm sure our lender would notify us shortly after we complete but its just so we know early so we can plan finances in the first month as we are renovating the property.
Thanks  

getmore4less

Always best to plan for double payment it will never be that big.
Once the dust settles(2nd DD goes out) any left over can be used to overpay.

Amy32

With completion date of the 30th you will only have 1 additional day of interest if your direct debit goes out on the 1st. But it may not go out until the 1st the month after in which case just keep your usual mortgage payment aside for the month you don’t have a payment. 

getmore4less

They may want to draw the funds more than a day.

and 30th  is Friday of a  BH weekend.
Anything goes wrong with completion it's  Tues to get it sorted.

LDreader

I completed on 29th January - first payment was taken on 16th Feb, just slightly (£20?) higher than regular monthly payments and then regular payments taken from 1st March.

Thrugelmir

You'll be charged interest from when the solicitor draws down funds not the completion date. 

MovingForwards

All lenders are different.
Mine, not the same as the one you've mentioned in other threads, didn't take anything on the 1st (day I completed, but concluded missives the day before) but took the interest from drawdown and the normal months payment the month after.

There's a big thread about your lender, maybe someone has mentioned it. Also have a look in the T&C's with the mortgage offer as it should say how they work it.

Thrugelmir

Direct debits take a minimum of 10 days to be set up, and there's the admin processes following completion. Hence the inevitable delay in setting up the first payment. 

snowqueen555

Just bumping this. I've had an offer come in, the first payment seems high? Usual payment of £462 but first month is £745. Is 60% more typical?

kingstreet

It's just an example. It assumes completion on 1st of the month making it the worst it could possibly be!