Nationwide Mortgage First Payment

First_Time_Buyer000

Hi all, 

We are first time buyers and have recently received the mortgage offer from Nationwide. We are a bit confused with the dates for the first and second payment and would appreciate any guidance. The offer letter states that the following (points a & b below):

a) "When your monthly payments are due: Under our agreement, your monthly payment will always fall due on the first of each month. You can choose to make your monthly payments on any day up to the 28th of each month, but this will not change the contractual due date"

b) "This illustration assumes that the mortgage will start on 1 July 2023. You will need to make an initial payment including interest charged in the month of completion and the first full monthly payment of £XXXX. Followed by 59 payments of £YYYY. Followed by 191 payments of £ZZZZ."

When the Nationwide mortgage advisor asked us for the preferred date of payments, we provided the 28th of each month. As an example if we complete on the 24th of July, will our first mortgage payment (XXXX) be due on the 28th of July or the 1st of August? And then will the 2nd payment (YYYY) be on the 28th of August?

And what if we complete on the 1st of August? Will the first payment be due on the day of completion being the 1st of the month? Or will it be the 28th of August?

Thanks in advance for your help.

K_S

@first_time_buyer000 After completion, Nationwide will send you a letter confirming the first payment date, amount and when the DD will go out. So you should get some warning before its taken.

The exact date will depend on when you complete, how long it takes to set up the DD (will usually only be initiated upon/after completion).

If you completed on 10 July, I'd expect the first payment to go out on 28 Jul but if you completed on 25 July, I don't think that's sufficient time for them to set up the DD, inform you etc, so the first payment might go out 15-20 days after completion or on 28th August.

The first payment will usually include the interest from completion until that day PLUS the next month's payment. 

Hopefully that helps!

First_Time_Buyer000 said:

Hi all, 

We are first time buyers and have recently received the mortgage offer from Nationwide. We are a bit confused with the dates for the first and second payment and would appreciate any guidance. The offer letter states that the following (points a & b below):

a) "When your monthly payments are due: Under our agreement, your monthly payment will always fall due on the first of each month. You can choose to make your monthly payments on any day up to the 28th of each month, but this will not change the contractual due date"

b) "This illustration assumes that the mortgage will start on 1 July 2023. You will need to make an initial payment including interest charged in the month of completion and the first full monthly payment of £XXXX. Followed by 59 payments of £YYYY. Followed by 191 payments of £ZZZZ."

When the Nationwide mortgage advisor asked us for the preferred date of payments, we provided the 28th of each month. As an example if we complete on the 24th of July, will our first mortgage payment (XXXX) be due on the 28th of July or the 1st of August? And then will the 2nd payment (YYYY) be on the 28th of August?

And what if we complete on the 1st of August? Will the first payment be due on the day of completion being the 1st of the month? Or will it be the 28th of August?

Thanks in advance for your help.

First_Time_Buyer000

@K_S Thank you for the quick and descriptive response. Would I be correct in my understanding that the first month (say I complete on 24th July) will consist of only 1 mortgage payment (XXXX which consists of interest till that date and first month advance)? Or can it be both payment 1 (XXXX) and payment 2 (YYYY) that would be due on the 28th of August. Thanks again.