solve an argument

andys15

Hi I am in the process of purchasing the house I am currently renting and the wife and I are in disagreement about mortgage/rent.
Our contract expires on 21st june, and we are hoping that we will have completed on the 22nd June. In terms of the rent, because we paid a month in advance our last rent payment is the 18th May, I then believe that our 1st mortgage payment will be the 22nd ish July as I believed that we will always be a month in arrears on the mortgage. My wife believes that the mortgage payment will be in June just after we complete. Who is right.

ffacoffipawb

andys15 wrote: »

Hi I am in the process of purchasing the house I am currently renting and the wife and I are in disagreement about mortgage/rent.
Our contract expires on 21st june, and we are hoping that we will have completed on the 22nd June. In terms of the rent, because we paid a month in advance our last rent payment is the 18th May, I then believe that our 1st mortgage payment will be the 22nd ish July as I believed that we will always be a month in arrears on the mortgage. My wife believes that the mortgage payment will be in June just after we complete. Who is right.

Interest will be charged from completion. It is normally payable in advance, so in that instance your wife is correct.

(Aren't they always???)

bigheadxx

Normally your first mortgage payment is one month afetr completion as no interest will have accrued immediately after completion. Eg if you only had an interest only mortgage, if you paid it before the interest had accrued you would effectively be making a capital repayment.
However if you can afford it the sooner you start making capital repayments on your mortgage the better.

Doozergirl

You pay mortgage in advance. Your first repayment is often a heavy one because it includes areas (pro-rate) and then a full month.

Sorry; it feels nice to be given all that money and then they land a heavy one on you in the first month which takes it all away!

Interestingly, you're often not in arrears until one full month after your due date - so if you do decide to pay your mortgage for the end of the month instead of the beginning, it may likely not affect your credit rating. I'd be happy paying at the beginning so that if things do go wrong, the buffer is there.