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  • FIRST POST
    • Made_Without
    • By Made_Without 15th Oct 10, 8:37 PM
    • 365Posts
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    Made_Without
    When is the first mortgage payment due
    • #1
    • 15th Oct 10, 8:37 PM
    When is the first mortgage payment due 15th Oct 10 at 8:37 PM
    Post completion?

    so if a person completes on the 15th of October when do mortgage payments start and when does the bank send the notification?

    Thanks

    C*F
Page 1
    • HelenDaveKids
    • By HelenDaveKids 15th Oct 10, 8:42 PM
    • 3,156 Posts
    • 21,118 Thanks
    HelenDaveKids
    • #2
    • 15th Oct 10, 8:42 PM
    • #2
    • 15th Oct 10, 8:42 PM
    We complete on Friday. I understand our first payment is the date we asked for, which is begining of month (1st), however you have to pay an additional payment with the first one, which at best guess i would say is about 2 3rds of monthly payment. No idea why but was expecting it as I knew thats what they did. Makes that first month VERY expensive.

    we've already had our bank notification telling us about this.
    • Made_Without
    • By Made_Without 15th Oct 10, 8:45 PM
    • 365 Posts
    • 137 Thanks
    Made_Without
    • #3
    • 15th Oct 10, 8:45 PM
    • #3
    • 15th Oct 10, 8:45 PM
    @HelenDaveKids

    Did you receive the bank notification after exchange?

    C*F
    • picardygirl
    • By picardygirl 15th Oct 10, 9:05 PM
    • 539 Posts
    • 226 Thanks
    picardygirl
    • #4
    • 15th Oct 10, 9:05 PM
    • #4
    • 15th Oct 10, 9:05 PM
    It will depend on which date your lender requires their first payment. We have just remortgaged to a new lender and received notification three days after completion. Our new lenders required payment date is 16th of every month, whereas our old lenders was the 1st of every month.
    • Yorkie1
    • By Yorkie1 15th Oct 10, 9:13 PM
    • 11,055 Posts
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    Yorkie1
    • #5
    • 15th Oct 10, 9:13 PM
    • #5
    • 15th Oct 10, 9:13 PM
    You agree with the lender which day of the month they will take the payment from your account. So although the payment falls due on, probably, the first of the month, you may agree that it is taken out on, say the 5th.

    After completion and before the first payment date the lender will write to you and tell you how much the first payment will be.

    So, if you complete today (15th), and your payment is due on 5th of next month, on the 5th you will pay your regular monthly payment (i.e. for November) plus the pro-rata amount for the days in October after completion.

    Hope that makes some sense.
    • Made_Without
    • By Made_Without 15th Oct 10, 9:16 PM
    • 365 Posts
    • 137 Thanks
    Made_Without
    • #6
    • 15th Oct 10, 9:16 PM
    • #6
    • 15th Oct 10, 9:16 PM
    @Yorkie1

    Thanks! Makes sense - am just having panic attacks that I will have a shorfall if they ask for it immediately.
    Mind you, havent exchanged yet - so this could all still be theoretical!

    C*F
  • Littlebutterfly
    • #7
    • 15th Oct 10, 10:00 PM
    • #7
    • 15th Oct 10, 10:00 PM
    We complete on Friday. I understand our first payment is the date we asked for, which is begining of month (1st), however you have to pay an additional payment with the first one, which at best guess i would say is about 2 3rds of monthly payment. No idea why but was expecting it as I knew thats what they did. Makes that first month VERY expensive.

    we've already had our bank notification telling us about this.
    Originally posted by HelenDaveKids
    Hmmm...not heard about this extra amount being payable - do you perhaps mean your product fee?

    Lb
    • Cissi
    • By Cissi 15th Oct 10, 10:16 PM
    • 1,111 Posts
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    Cissi
    • #8
    • 15th Oct 10, 10:16 PM
    • #8
    • 15th Oct 10, 10:16 PM
    Hmmm...not heard about this extra amount being payable - do you perhaps mean your product fee?

    Lb
    Originally posted by Littlebutterfly
    Umm, it's not an "extra" amount - if you complete on the 15th of the month and your mortgage isn't collected until the 5th of the next month, did you think you'd be living for free in those first 3 weeks?
  • colli
    • #9
    • 16th Oct 10, 2:11 AM
    • #9
    • 16th Oct 10, 2:11 AM
    we completed on the 23rd Aug, first mortgage payment was 1st Oct. It was payment for Sep plus interest for 23 Aug-1st Sep. We were notified of the amount a week or so after completion but I guess it depends on your mortgage co (HSBC for us). worked out well as coming from rented no mortgage or rent to pay for Sep, can't see having a month like that for a long time!
    • TrickyDicky101
    • By TrickyDicky101 16th Oct 10, 6:59 AM
    • 3,314 Posts
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    TrickyDicky101
    Mortgages traditionally quote and charge interest on the basis of repayments in advance which means if you take out your mortgage on day 1 then the first repayment is also due on day 1 (the alternative would be repayments in arrears whereby the first repayment would be due after 1 month). Doing this serves to reduce the headline mortgage rate charged marginally and thus reduce the size of the monthly repayments slightly which may explain why banks quote on this basis (as if taken out on a repayment date, the amount borrowed is effectively Mortgage Amount less First Repayment Amount).

    If you take out the mortgage on a non-repayment date, then on your first repayment date you will thus have to pay the first full repayment amount plus any accrued interest from the date the mortgage was advanced to the first repayment date. This can be quite a shock if you set repayments for eg the 1st of the month, but take the mortgage on the 2nd, as you will pay almost double your normal monthly repayment on the first repayment date.
    • Made_Without
    • By Made_Without 16th Oct 10, 7:11 AM
    • 365 Posts
    • 137 Thanks
    Made_Without
    Mortgages traditionally quote and charge interest on the basis of repayments in advance which means if you take out your mortgage on day 1 then the first repayment is also due on day 1 (the alternative would be repayments in arrears whereby the first repayment would be due after 1 month). Doing this serves to reduce the headline mortgage rate charged marginally and thus reduce the size of the monthly repayments slightly which may explain why banks quote on this basis (as if taken out on a repayment date, the amount borrowed is effectively Mortgage Amount less First Repayment Amount).

    If you take out the mortgage on a non-repayment date, then on your first repayment date you will thus have to pay the first full repayment amount plus any accrued interest from the date the mortgage was advanced to the first repayment date. This can be quite a shock if you set repayments for eg the 1st of the month, but take the mortgage on the 2nd, as you will pay almost double your normal monthly repayment on the first repayment date.
    Originally posted by TrickyDicky101
    I *think* I follow and understand - thanks!s
    • pavlovs_dog
    • By pavlovs_dog 16th Oct 10, 7:23 AM
    • 9,818 Posts
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    pavlovs_dog
    we completed and exchanged on 3rd september. on 15th september we paid our first payment, which was the interest calculated on the mortgage from the day it was released to the solicitor (2nd sept) until the day of our first mortgage payment which will be 28th Oct.
    know thyself

    Nid wy'n gofyn bywyd moethus...
    • PurpleJellyFish
    • By PurpleJellyFish 16th Oct 10, 8:32 AM
    • 539 Posts
    • 8,322 Thanks
    PurpleJellyFish
    Which lender are you with?

    I completed on 23rd Aug and first payment was on 21st Sep. I was fully expecting to have almost two months to pay in one but that wasn't the case, just the normal monthly payment. When I queried it, Nat West said that they don't pro rata the interest. Probably more beneficial to them than me in the long run though!
    Save 12K in 2019 #147- 9562.16
  • Littlebutterfly
    Umm, it's not an "extra" amount - if you complete on the 15th of the month and your mortgage isn't collected until the 5th of the next month, did you think you'd be living for free in those first 3 weeks?
    Originally posted by Cissi
    Er....no I don't think that, but the original poster referred to the first payment having an 'additional payment" and of course, it's not an 'additional' payment but merely a catch - up one.

    Why so snippy?

    Lb
    • HelenDaveKids
    • By HelenDaveKids 16th Oct 10, 8:24 PM
    • 3,156 Posts
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    HelenDaveKids
    @HelenDaveKids

    Did you receive the bank notification after exchange?

    C*F
    Originally posted by Chocolate*fish

    No before. It came with the valuation of the house and the break down of the morgage offer.
    • HelenDaveKids
    • By HelenDaveKids 16th Oct 10, 8:26 PM
    • 3,156 Posts
    • 21,118 Thanks
    HelenDaveKids
    Hmmm...not heard about this extra amount being payable - do you perhaps mean your product fee?

    Lb
    Originally posted by Littlebutterfly
    no, not product fee. Its an interest type payment. i remember paying it last time too. Ours didn't have a product fee, just 99 valuation fee (payable up front).

    We actually get 250 back which i think is a bizarre concept.
    Last edited by HelenDaveKids; 16-10-2010 at 8:29 PM.
  • Littlebutterfly
    Yes, with some lenders they have that sort of deal - its 500 with Halifax

    lb
    • Made_Without
    • By Made_Without 17th Oct 10, 10:56 AM
    • 365 Posts
    • 137 Thanks
    Made_Without
    No before. It came with the valuation of the house and the break down of the morgage offer.
    Originally posted by HelenDaveKids
    I haven't received this - will get on the phone!

    C*F
    • Made_Without
    • By Made_Without 17th Oct 10, 10:58 AM
    • 365 Posts
    • 137 Thanks
    Made_Without
    Which lender are you with?

    I completed on 23rd Aug and first payment was on 21st Sep. I was fully expecting to have almost two months to pay in one but that wasn't the case, just the normal monthly payment. When I queried it, Nat West said that they don't pro rata the interest. Probably more beneficial to them than me in the long run though!
    Originally posted by PurpleJellyFish
    First Direct.

    I'm getting slightly worried that I will be all out of money on completion if the the mortgage payment and council tax and utilities all kick in at once (esp. before this months pay day)

    C*F
    • MF2015
    • By MF2015 17th Oct 10, 11:15 AM
    • 308 Posts
    • 96 Thanks
    MF2015
    Don't you have a back-up fund?

    What if you find the boiler goes in the first month, or your car breaks down?

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