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Mortgage first payment
Russ39326
Posts: 10 Forumite
Got a mortgage going through w Halifax. I'm not sure what day of the month to complete. I read that if you complete towards the end of April, the first payment is May. Whereas if I leave it til 4th May, I wont have to pay til June? Is this how it works? I'm keen to get into the new house but if it means not making the first payment til June I'd rather wait a week. Any thoughts? Am a FTB and confused
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Russ39326 said:Got a mortgage going through w Halifax. I'm not sure what day of the month to complete. I read that if you complete towards the end of April, the first payment is May. Whereas if I leave it til 4th May, I wont have to pay til June? Is this how it works? I'm keen to get into the new house but if it means not making the first payment til June I'd rather wait a week. Any thoughts? Am a FTB and confused
Have you had your mortgage offer yet? If so, the documentation normally explains the process for your first payment (at least it did with my own with Barclays). If the first payment rolls into the next month, my understanding is that you still pay the interest from the day you complete, so your first month will be much larger than your normal payments.
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This is from the Halifax Mortgage guide:
When will you collect my first payment? We always collect your first payment in the month after your mortgage starts. For example, if we release your loan in June, we’ll collect your first payment in July. When you applied for your mortgage, we asked you what day of the month you wanted to make your monthly payment. We’ll collect your first payment on the day you choose, except where there are fewer than four bank working days between when we release your loan and your chosen payment date. If this happens, we’ll collect your first payment on the 10th of the month.
EXAMPLE 1: Monthly payment date you choose is the 25th of the month. We release the loan on 25th June. We collect your first payment on 25th July.
EXAMPLE 2: Monthly payment date you choose is the 1st of the month. We release the loan on 28th June. We collect your first payment on 10th July
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I did mine with Halifax on the last working day of the month to minimise the number of days that were added to 1st payment.Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.0
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