First Mortgage Payment

JamieJ89

Evening all, sorry if this question has been asked many times before but just asking for some thoughts.

FTB new build and due to be given notice on Tuesday this coming week, which means I will complete 2 weeks later (17th December).

I've asked my mortgage broker, but still non-clearer but wanted to check my if very vague understanding is correct. Monthly payment is £1500. Will first payment be taken approx 14 days later, consisting of 1 months payment + the interest of the 14 days left in December? 

I want my payment to be the 25th of every month, so just want to be sure that 1st/2nd january will be my first (larger) payment and the 25th of Jan will revert back to normal?

Lender is Halifax.

Thanks.

Hoenir

Direct debits are only normally only allowed to be taken once a month. To commence on the 25th January you would need to set up a standing order. As the bank would commence taking the standard amount by direct debit from the 1st February. 

With a completion date of 17th December. 1st of January is extremely tight ( is a bank holiday in any event). Direct debits take a minimum of 10 working days to set up. 

Jemma01

Don't know about Halifax. But for HSBC, I completed on the 25th of Oct, and the first largest payment was on the 2nd of December. So over a month (38days?).

On my letters from HSBC, they said first payment will be higher as it accounts for the extra days, and the next standard payment will start from 2nd of January. 

Like you, unfortunately, the letter didn't mention the date of the first payment so I rang the bank over the last weekend cuz I was panicking if they're taking the payment on the 2nd of January (as the letter said), then I'd be two months overdue. Thankfully, it was just that the date for the first payment was missed out.

I chose the 2nd when I sent my application. If you chose the 25th, then it would be that. I think you can amend it if you chose something else, if you aren't sure ring them (your letters on your mortgage account should state everything, please check and ring them if you're still unsure).

amnblog

The first monthly payment is always collected in the month following completion, for example if a mortgage completes in December the first payment will be collected in January. This will be collected on the customer’s chosen monthly payment date. 

The first monthly payment includes an amount of ‘Initial Interest’ from the day of completion to the end of that month plus the first monthly mortgage payment. For example:

If completion occurs on the 17th, interest is calculated from the 17th to the end of the month and then added to the first payment

The 'Amount of each instalment' section (section 6.) of the mortgage illustration sets out a first payment assuming a mortgage completes on the 1st of the following month. A customer’s first monthly payment may be different as it will depend on when the loan starts.  (this gives a view of the highest possible first payment)

In common with all Lenders, Halifax write to customers when the mortgage starts to tell them when they will collect their first and subsequent payments.

Other interested thread viewers should note:

If Halifax completion occurs in the last few days of any month and results in less than 4 working days between the completion date and the customer's chosen payment date (excluding those days), the first payment will then be collected on the 10th of that month. This date will then revert to the customer's chosen payment date on the following month.

kingstreet

You can find this here on pages 8/9 and the guide should have accompanied your mortgage offer;-

https://www.halifax-intermediaries.co.uk/assets/pdf/info-about-your-mortgage.pdf