One off payment installments in Remortgage

Zikar0

Hi,

Hope someone can help, my Brooker firstly sent a illustration a normal repayment plan of monthly payments, then he sent another one updated one with one off payment added to the illustration around 2k I have to pay before repayments begin??

He is not explaining well why and what that is for??

Does anyone know... 

K_S

@zikar0 If you can paste a screenshot (please make sure you remove/redact) any personal information) of the section of the illustration you're talking about, might be helpful.

If I had to guess, you might be talking about the first mortgage payment which will be higher than the regular ones.

Zikar0 said:

Hi,

Hope someone can help, my Brooker firstly sent a illustration a normal repayment plan of monthly payments, then he sent another one updated one with one off payment added to the illustration around 2k I have to pay before repayments begin??

He is not explaining well why and what that is for??

Does anyone know... 

Zikar0

K_S said:

@zikar0 If you can paste a screenshot (please make sure you remove/redact) any personal information) of the section of the illustration you're talking about, might be helpful.

If I had to guess, you might be talking about the first mortgage payment which will be higher than the regular ones.

Zikar0 said:

Hi,

Hope someone can help, my Brooker firstly sent a illustration a normal repayment plan of monthly payments, then he sent another one updated one with one off payment added to the illustration around 2k I have to pay before repayments begin??

He is not explaining well why and what that is for??

Does anyone know... 

See attached below, it was not there in the first illustration so why did it get added ?

K_S

@zikar0 Ah ok, that is the first mortgage payment that I was referring to.

That figure on the illustration is an assumption based on an assumed completion date. The actual amount of the first payment will depend on when in the month you complete, when you regular direct debit will go out, etc. With most lenders, they will send you a letter after completion giving you the date and amount that the first payment will be taken.

The first payment will usually be larger than the normal monthly payment because it includes an interest payment which covers the interest for the days between completion and the first payment.

This is how Nationwide explains it https://www.nationwide.co.uk/mortgages/existing-mortgage-members/first-payment-notification/

Zikar0 said:

K_S said:

@zikar0 If you can paste a screenshot (please make sure you remove/redact) any personal information) of the section of the illustration you're talking about, might be helpful.

If I had to guess, you might be talking about the first mortgage payment which will be higher than the regular ones.

Zikar0 said:

Hi,

Hope someone can help, my Brooker firstly sent a illustration a normal repayment plan of monthly payments, then he sent another one updated one with one off payment added to the illustration around 2k I have to pay before repayments begin??

He is not explaining well why and what that is for??

Does anyone know... 

See attached below, it was not there in the first illustration so why did it get added ?

Zikar0

I see, so the figure is not fixed, when would it be best to start new mortgage if we normally pay out on 4th June every month so we pay the least interest rate... is there a way around it?

rally8765

Zikar0 said:

I see, so the figure is not fixed, when would it be best to start new mortgage if we normally pay out on 4th June every month so we pay the least interest rate... is there a way around it?

The best way would be to complete later in the month (i.e last week of the month) as that will mean less interest accrued. Banks usually release funds a few days before the completion. 

Zikar0

rally8765 said:

Zikar0 said:

I see, so the figure is not fixed, when would it be best to start new mortgage if we normally pay out on 4th June every month so we pay the least interest rate... is there a way around it?

The best way would be to complete later in the month (i.e last week of the month) as that will mean less interest accrued. Banks usually release funds a few days before the completion. 

In terms of completing you mean when everything is signed off?