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First Mortgage Payment Confusion...

Missbeexx
Missbeexx Posts: 19 Forumite
First Anniversary First Post Combo Breaker
in House buying, renting & selling
Hiya

I am a FTB and exchanged contracts last Monday (yay!!) :beer:

Just a bit confused over my first mortgage payment and need your help please guys.

So when I first met with my IFA to discuss our mortgage needs I told her the date I would like the mortgage payment to come out is the 17th of each month (as I get paid on the 15th)

As it happens we are agreed on completion for the 17th March so I assumed my first mortgage payment would also come out the 17th March... I did ring Barclays/Woolwich to check this and the guy I spoke to told me my first payment would come out on the 16th April :S (I know I should ring back and double check but the lines are closed and I am a terrible over thinker lol)

So my question is will that payment on the 16th April consist of 2 months mortgage payments or just one?

In my mortgage offer it actually says the following:

These payments are based on a loan amount of xxxx and assume the mortgage will start on 01 March 2017. Your first payment will include interest from the date of completion to the end of that month which will be added to your normal monthly payment in the following month.

What do you think? :) help me understand please :D
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Comments

  • ACG
    ACG Posts: 23,726 Forumite
    First Anniversary Name Dropper First Post I've helped Parliament
    Interest only will be from the date of completion until the end of the month.
    In addition to your first months payment.

    So it ill not be 2 months paysments, but it wil be higher than your normal payment. Barclays will send you a letter confirming the amount.

    It may be worth speaking to Barclays however to confirm the payment date as I have never had a mortgage that did not have payments due on the 1st of the month.

    On a side note, assuming your interest is charged daily, every day after the first you have it means it will be costing you more in interest. ie the 2nd of the month will cost less than the first, the 3rd will cost less than the 2nd and so on.
    I am a Mortgage Adviser
    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.
  • KiKi
    KiKi Posts: 5,377 Forumite
    First Post First Anniversary
    I remember this from my previous two mortgages - and getting that wonderful surprise of effectively not having to pay the mortgage payment in month 1 (just the interest). Obviously you're still paying it overall, because the mortgage ends a month later, but I really liked having that first month 'off'!
    ' <-- See that? It's called an apostrophe. It does not mean "hey, look out, here comes an S".
  • Missbeexx
    Missbeexx Posts: 19 Forumite
    First Anniversary First Post Combo Breaker
    ACG wrote: »
    Interest only will be from the date of completion until the end of the month.
    In addition to your first months payment.

    So it ill not be 2 months paysments, but it wil be higher than your normal payment. Barclays will send you a letter confirming the amount.

    It may be worth speaking to Barclays however to confirm the payment date as I have never had a mortgage that did not have payments due on the 1st of the month.

    On a side note, assuming your interest is charged daily, every day after the first you have it means it will be costing you more in interest. ie the 2nd of the month will cost less than the first, the 3rd will cost less than the 2nd and so on.


    Thank you for your reply. Think I understand right now so in April I will pay my normal monthly payment plus 15 days interest? but I need to check with Barclays that they are going to be taking the money out on the 17th as I originally wanted :)

    I'm so impatient and like to know things in advance. I can't help myself :p
  • Missbeexx
    Missbeexx Posts: 19 Forumite
    First Anniversary First Post Combo Breaker
    KiKi wrote: »
    I remember this from my previous two mortgages - and getting that wonderful surprise of effectively not having to pay the mortgage payment in month 1 (just the interest). Obviously you're still paying it overall, because the mortgage ends a month later, but I really liked having that first month 'off'!

    I am trying not to mentally spend the extra money and keep it in the pot so I am ahead of myself lol :D
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Name Dropper First Anniversary First Post I've helped Parliament
    2 days between getting paid and making the payment may be a bit tight if you don't have a buffer, but paying as soon as you have the money is the best option.

    My Barclays payments come out on the 16th, the interest is added on the 1st.
  • Callie22
    Callie22 Posts: 3,444 Forumite
    First Anniversary First Post
    KiKi wrote: »
    I remember this from my previous two mortgages - and getting that wonderful surprise of effectively not having to pay the mortgage payment in month 1 (just the interest). Obviously you're still paying it overall, because the mortgage ends a month later, but I really liked having that first month 'off'!

    It was the same for us. I remember absolutely freaking out because the mortgage didn't go out the first month and I was convinced that we'd done something wrong! After renting for so long I was sure that we'd 'missed' a month and we'd be kicked out before we'd even started. A phone call to the bank explained it all but it really is something that you don't realise as a FTB, and yes, it is a nice surprise.
  • Missbeexx
    Missbeexx Posts: 19 Forumite
    First Anniversary First Post Combo Breaker
    getmore4less wrote: »
    2 days between getting paid and making the payment may be a bit tight if you don't have a buffer, but paying as soon as you have the money is the best option.

    My Barclays payments come out on the 16th, the interest is added on the 1st.

    Yeah that's what I was thinking just get it paid when I get paid. My partner gets paid fortnightly so that's why I decided on the 17th just because aswell if my pay date falls over a weekend I will get paid the Friday before. :)

    Did you ask for your payments to come out the 16th?
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Name Dropper First Anniversary First Post I've helped Parliament
    Missbeexx wrote: »
    Did you ask for your payments to come out the 16th?

    No : that was the date all mortgages of the type(open plan offset) had the DD set too at that time.

    with offset in does not matter when the payment gets taken if it coes from an offset account.
  • kinger101
    kinger101 Posts: 6,282 Forumite
    First Anniversary Name Dropper First Post
    It might include a day or two more than your think, as your solicitor may have requested the funds a bit earlier than completion date, just to be on the safe side.
    "Real knowledge is to know the extent of one's ignorance" - Confucius
  • Missbeexx
    Missbeexx Posts: 19 Forumite
    First Anniversary First Post Combo Breaker
    kinger101 wrote: »
    It might include a day or two more than your think, as your solicitor may have requested the funds a bit earlier than completion date, just to be on the safe side.

    Ok so the figure I have worked out just add another couple of days interest to the equation to be on the safe side is that what you mean?
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