mortgage payments

beecher

If you get paid on the third last day of the month you'd be far better having the payments come off on the 1st of the following month and forgetting about having a 'free' month. You could set up a DD for the 28th, but if it comes out of your account before your wages go in you'd be in trouble.

Are you sure that you have until 20 July to tell them when the DD will come off?

happybroker

I think people are getting confused here as you are calling the wage you receive in August your September wage as this is when you will spend it which is fair enough.

The best thing to do is open a second bank account for your bills, work out how much you will need to put away each month for mortgage, protection, utilities, cars council tax etc....everything you have to pay every month...and then put a months worth of money in that account.

You will then be a month in front of yourself and can top the account up with a standing order each pay day and it really won't matter what day of the month your payments come out as there will always be cash there.

Obviously being a broker i have a fair bit of experience with banks and one thing I have learned is you will never ever win when it comes to them charging interest!

andys15

Ok thanks for all the replys, I think I am confusing matters but the mortgage advisor at bristol and west was confused also.

I used to have a mortgage with the Natwest about 4 years ago. One month the tennant didn't pay which left me short for the month. I asked Natwest for a mortgage holiday but I didn't like the fact that it was still seen as a late payment or would still have to pay double the month after(cant remember which). Anyway what I did was change when my direct debit came out, as the lady said as long as they receive it in the same calender month they didn't care. So instead of paying on the 1st(that months pay), I paid on the 30th. So for instance:

April 28th- pay day £1000
May 1st- mortgage £1000
May 1st - bank account £0
change my direct debit to the end of the month
May 28th - pay day £1000
jun 28th pay day £1000
jun 30th mortgage £1000
jun 30th bank account £1000


So Natwest got the mortgage paid in May and Jun. It can only work once, but as you see, one pay day with out paying the mortgage.

Gambit

happybroker wrote: »

The best thing to do is open a second bank account for your bills, work out how much you will need to put away each month for mortgage, protection, utilities, cars council tax etc....everything you have to pay every month...and then put a months worth of money in that account.

You will then be a month in front of yourself and can top the account up with a standing order each pay day and it really won't matter what day of the month your payments come out as there will always be cash there.

This is a great idea and similar to what I do. I use a Halifax High Interest account as my joint account with my girlfriend. Every payday we put money into there (over £1000 in order to get the high interest rate) which covers rent, bill and things like food shopping and petrol. That way we always have enough money to pay bills and essentials which earning interest on those days before the payment is taken out. This means that nights out and other non essential spend is taken from my personal account and I never have to be worried about spending the 'rent money'. Hoping this well help when we finally buy a flat later this year and will prevent us missing mortgage payments.