1st mortgage payment

Hopeful0324

Just a quick query - if completion occurs mid month - hopefully around 18th-19th of this month - when would the first mortgage payment be? Are all mortgage payments on 1st month or can you choose a preferred date? If on 1st month would the first payment be on 1st May for example and would this be the amount for the dates 18th-30th April plus May's full payment - ie approx 11.5 x the regular monthly amount or are mortgage payments paid in arrears? Tried to research this on the internet but getting conflicting answers so thought I would ask the knowledgeable folk on here  

DE_612183

Depends on your lender - but most first payments will cover part of the month completion took place, plus a full month ( in advance ).

It doesn't matter when your payment is made - it covers that period.

So if you opt for 1st of the month ( I do this as it ties in neatly with other DD's and wages being paid end of previous month )

Then you get 18-30 april + May

I think the way it's worked out is the annual amount / 365 * 13 days.

Also note - you pay for the 18th and the 30th - so it's 13 days not 12.

This is how I understand it and how MY mortgage work - other companies may be different, but your mortgage adviser should tell you all this.

kingstreet

TBH we can't normally tell you exactly how much or when your first payment will be. This is confirmed by your lender to you following completion.

The payment to the month end is accrued interest, so you need to take the mortgage amount x interest rate / 365 to get the daily interest then x by number of days from funds drawdown to month end.

Example;-

£200,000 x 4.5% = £9,000 / 365 = £24.66 per day x 10 days = £246.60 accrued interest by completing on 20th/21st. Add that to your normal monthly payment.

Hopeful0324

DE_612183 said:

Depends on your lender - but most first payments will cover part of the month completion took place, plus a full month ( in advance ).

It doesn't matter when your payment is made - it covers that period.

So if you opt for 1st of the month ( I do this as it ties in neatly with other DD's and wages being paid end of previous month )

Then you get 18-30 april + May

I think the way it's worked out is the annual amount / 365 * 13 days.

Also note - you pay for the 18th and the 30th - so it's 13 days not 12.

This is how I understand it and how MY mortgage work - other companies may be different, but your mortgage adviser should tell you all this.

kingstreet said:

TBH we can't normally tell you exactly how much or when your first payment will be. This is confirmed by your lender to you following completion.

The payment to the month end is accrued interest, so you need to take the mortgage amount x interest rate / 365 to get the daily interest then x by number of days from funds drawdown to month end.

Example;-

£200,000 x 4.5% = £9,000 / 365 = £24.66 per day x 10 days = £246.60 accrued interest by completing on 20th/21st. Add that to your normal monthly payment.

Thank you both