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First mortgage payment. When?

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MLTrucker
MLTrucker Posts: 25 Forumite
in House buying, renting & selling
Good morning all.

Can anyone please tell me when the first mortgage payment would be taken? Is it taken upfront upon moving in? Or is it taken one month after the date which you have moved in?

Cheers

Comments

  • theartfullodger
    theartfullodger Posts: 14,601 Forumite
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    Different lenders different processes, ask them. Probably upfront though.
  • HampshireH
    HampshireH Posts: 4,480 Forumite
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    We bought on 1st june. Thought we had missed 1st payment and that it would be july instead.

    10days leter we got a letter saying they had taken 1st months payment 3 days prior to that.

    It really does depend on your lender.
  • bopsybunny
    bopsybunny Posts: 109 Forumite
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    We bought on 21st Dec. Our first mortgage payment will be 2nd Feb. Your lender will confirm it with you but it's usually after the first month, not upfront.
    Wedding savings Jan 19: £1.4k. Sept 19: £7.5k. Mar 20: £12.6k
    Goal: Pay for wedding by August 2020 <3
  • D_M_E
    D_M_E Posts: 3,008 Forumite
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    When we took out a mortgage our first payment was one month after the solicitor requested the funds.

    Depends on the terms of your lender and mortgage.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
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    It should be explained in your mortgage offer, if you already have that.
  • chunkytfg
    chunkytfg Posts: 844 Forumite
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    Not paid it yet as still waiting to buy but our nationwide offer says we elect the day to pay and then we pay capital and one months interest in advance along with interest charged for the period before the first payment.

    So we are choosing to pay on the 3rd and if the solicitor gets the funds on the 1st we pay 2 days interest on top of the full normal months payment however if we get it on the 5th we basically pay a whole months interest on top of the full mortgage payment on the 3rd the next time round.
    Those who risk nothing, Do nothing, achieve nothing, become nothing
    MFW #63 £0/£500
  • datlex
    datlex Posts: 2,239 Forumite
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    Mine was taken a couple of days after I moved in. I moved on the 29th June. First payment was 2nd July. I knew mine would be taken on the 1st of month or next working day. First month payment was 1 month plus any days between completion and the first, hence I chose the last working day in June to complete. I was in a fortunate position though, I was a first time buying a property that the local council were selling as the previous owner had gone into full time care and they were acting as her representatives. They were happy to go with the dates I wanted.
    Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.
  • MERFE
    MERFE Posts: 2,133 Forumite
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    Our is similar to Bopsybunny, we moved on 21st December and first payment is 1st Feb. Usual payment is £554 but the first months is £656 because of the extra interest.
  • kingstreet
    kingstreet Posts: 38,767 Forumite
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    Clearing banks collect in arrears, so the likes of HSBC will take first payment one full month after completion. The first payment will be a full month plus interest from completion to the completion month end.

    EG - complete on 28 July. First payment = 100% + 3 days interest on 1 September.

    Building societies and former building societies (Nationwide, Halifax) collect in advance. The first payment will be a full month plus interest from completion to the completion month end.

    EG - complete on 28 July. First payment = 100% + 3 days interest on/around 15 August with first regular payment on 1 September.

    Your final payment will be one month earlier to the latter and if you move, the redemption figure will generally be lower.

    Check with individual lenders.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • iquit
    iquit Posts: 1,939 Forumite
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    I just received completion statement, funds with solicitor today, completion tomorrow. First payment will be taken at end of February according to my lender. I'll be paying regular repayment amount plus interest on funds from today.
    2019 MFW No. 74 £13700/£30000 (45.66%)
    12k in 2018 No. 98 £6274.19/£18000 (34.85%)
    BTL (start) £97440.00 (current) £68000.00
    Residential (start) £275000.00 (current) £268000.00
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