First mortgage payment

Glitzkiss

Hello all,

I hope someone out there can help me get something straight in my head. I'm a FTB who completes on June 3rd. Am I right in thinking that my first mortage payment (Abbey) will not be paid until early July but it will also include interest for June? I did ask Abbey when it would be due by they said they would write to me when I complete to confirm payment

Now this financially isn't a problem for me but if that is the case then I would rather pay the full amount on June 3rd and clear some of the repayment part too. Is this possible?

I hope this makes sense and many thanks for your help

Glitzkiss

ger_ryan22

Glitzkiss wrote: »

Hello all,

I hope someone out there can help me get something straight in my head. I'm a FTB who completes on June 3rd. Am I right in thinking that my first mortage payment (Abbey) will not be paid until early July but it will also include interest for June? I did ask Abbey when it would be due by they said they would write to me when I complete to confirm payment

Now this financially isn't a problem for me but if that is the case then I would rather pay the full amount on June 3rd and clear some of the repayment part too. Is this possible?

I hope this makes sense and many thanks for your help

Glitzkiss

Not sure if this is any help to you, we exchanged contracts on the 23rd of Oct last year and got our keys that day, we pay our mortgage on the 1st of each month in advance so when our mortgage payment came out on 1st of November we owed interest as well on the time we were in the house, i.e from the 23rd, that was with Northern Rock so I'm not sure it would still be the case for Abbey but i do know that you pay interest from the very day you get your keys and that should be included on your first mortgage direct debit. Make any sense? Hope so! Good luck anyway.

AJ1982

I completed with an Halifax Mortgage on the 25th April, I am paying a sum on the 8th May, to include MAY & part for April. Then I pay again on 23rd June (The day I originall agreed) for JUNE, and so on every month after than (For the rest of my life...)

Glitzkiss

Thanks for that.

Ok, so it appears that interest will probably be paid from the 3rd of June. Damn, I knew I should have pushed for end of May completion.

Next question then is for the mortgage people out there. My mortgage is the Abbey fixed step rate averaging at 5.39% over the 3 years (sorry at work and don't have the paper work with me to give you more details ). Can I variably overpay eg. add repayment part of the mortgage from June onto first payment in July but then go back to the contractual amount the following month. I plan to overpay in 6 months time but want to give myself time to see if my budget is accurate first. Will Abbey let me adjust the amount of money I pay each month as long as it is more than they specify?

AJ1982

You should check if you have early repayment clauses in your mortgage... In my experience also be careful with the amount you can overpay before it becomes a capital payment, as opposed to an overpayment. (You cant reclaim capital payments on some mortgages).

One of the mortgagey people will know more, but theres something to chew on for now...

Glitzkiss

AJ1982 wrote: »

You should check if you have early repayment clauses in your mortgage... In my experience also be careful with the amount you can overpay before it becomes a capital payment, as opposed to an overpayment. (You cant reclaim capital payments on some mortgages).

One of the mortgagey people will know more, but theres something to chew on for now...

There is an early repayment clause but short of an unknown relative turning up and giving me lots of cash I don't need to worry about it. I know I can overpay by 10% each year without occurring any penalties as this was one of my requirements when I was discussing options with my broker. btw, he is on holiday otherwise I would be bugging him with these questions and not you lot

As it is a fixed step product my aim is to pay the amount I will need to pay at the top interest rate as soon as possible so that it won't come as too much of a shock in 2 years time. This will also mean I'll be paying off the capital sooner and not spend frivolously on things I don't require :money: . However, I'm realistic enough to know that the first 6 months (and possibly beyond) are the most expensive.

Anyway, this is my plan and as the next board I intend to lurk on is the Oldstyle I hope I can stick with it.