Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • SuboJvR
    • By SuboJvR 6th Aug 17, 6:29 PM
    • 455Posts
    • 339Thanks
    SuboJvR
    First mortgage payment - Santander
    • #1
    • 6th Aug 17, 6:29 PM
    First mortgage payment - Santander 6th Aug 17 at 6:29 PM
    Hi all,

    I've searched but haven't found an answer on this one as yet so I was hoping someone could give me an idea based on recent experience.

    Essentially - do Santander take money in advance, or in arrears?

    There are some suggestions that banks are in arrears, and building societies in advance. But former building societies may be in advance. And I'm not sure what category Santander falls into!!

    We are currently renting and I anticipate an overlap period of between 4-6 weeks as we will give notice on our current property when we get the two weeks' notice from the builder (new build).

    We have a mortgage offer from Santander and all being well will follow this through to completion. We have requested our payment date to be the 1st of the month.

    For example let's say we complete on the 2nd of September. When will Satander take payment, and what will this be for?

    If we complete on say the 18th of September (i.e. less than 2 weeks until the 1st October), would this change what they would take?

    The terms leaflet from Santander is very vague - it only says they will write to us to inform us of the first payment date.

    I'm hoping we will pay our final rent payment from one salary payment (e.g. in the example, August payday end of the month), and the mortgage + interest from the next (September). Or would it only be the second month's salary (October payday) instead covering two months' (September + October) worth in the new house?

    Affordability isn't a problem but I would just like to have it clear in my head and ensure the right money is in the right account at the right time.

    Is there a chance we will be needing to pay double (i.e. rent and mortgage) in the first month using August's payday, with Santander?

    I hope that makes sense.
Page 1
    • myhouse
    • By myhouse 6th Aug 17, 6:38 PM
    • 542 Posts
    • 696 Thanks
    myhouse
    • #2
    • 6th Aug 17, 6:38 PM
    • #2
    • 6th Aug 17, 6:38 PM
    Most sensible thing to do would be to phone up and ask them.
    From experience my first mortgage payment was paid more than a month after the purchase date and was a little higher than the normal monthly fee to compensate. That was a bank but not Santander though it seems sensible since most people can't throw money at a house then pay a monthly fee straight away.
    You may find they are flexible on the first payment.
    • surreysaver
    • By surreysaver 6th Aug 17, 7:47 PM
    • 2,467 Posts
    • 1,373 Thanks
    surreysaver
    • #3
    • 6th Aug 17, 7:47 PM
    • #3
    • 6th Aug 17, 7:47 PM
    My mortgage is with Santander (although taken out when it was still Abbey National), and my first payment was more than a month after completion, so was higher than a normal month's payment as it had about 5 weeks' interest included.
    I consider myself to be a male feminist. Is that allowed?
    • worried jim
    • By worried jim 6th Aug 17, 7:57 PM
    • 9,231 Posts
    • 14,238 Thanks
    worried jim
    • #4
    • 6th Aug 17, 7:57 PM
    • #4
    • 6th Aug 17, 7:57 PM
    My mortgage is with Santander (although taken out when it was still Abbey National), and my first payment was more than a month after completion, so was higher than a normal month's payment as it had about 5 weeks' interest included.
    Originally posted by surreysaver
    Same for me, although 14 years ago so things may have changed now.
    "Only two things are infinite-the universe and human stupidity, and I'm not so sure about the universe"
    Albert Einstein
    • Toonsy
    • By Toonsy 6th Aug 17, 8:43 PM
    • 64 Posts
    • 35 Thanks
    Toonsy
    • #5
    • 6th Aug 17, 8:43 PM
    • #5
    • 6th Aug 17, 8:43 PM
    I'd echo the above. I'm not with Santander but had the same kind of question myself recently as my old mortgage was paid on the 1st of the month every month but when I remortgaged to Tesco the old mortgage was redeemed on the 31st with Tesco instructed to take my new mortgage on the 1st.

    That was this month just gone. I got told by solicitor to cancel DD to Northern Rock on 31st so my payment dudbt go on the 1st August and Tesco have since written to me to say their first payment will be 1st September albeit a slightly higher amount for one month before reverting to 'normal"
    • htaylor16
    • By htaylor16 7th Aug 17, 9:48 AM
    • 23 Posts
    • 10 Thanks
    htaylor16
    • #6
    • 7th Aug 17, 9:48 AM
    • #6
    • 7th Aug 17, 9:48 AM
    I've just completed with Halifax. We completed on 16th July, first payment ;which is higher) is being taken out on 10th and then second payment on the 1st September. So two massive payments in a month, it's really screwed yes uk because we weren't expecting (or budgeted) for it, expecting it to be taken out in September. So I would ring the bank and ask.
    • htaylor16
    • By htaylor16 7th Aug 17, 9:49 AM
    • 23 Posts
    • 10 Thanks
    htaylor16
    • #7
    • 7th Aug 17, 9:49 AM
    • #7
    • 7th Aug 17, 9:49 AM
    Sorry that should say completed on the 27th July
    • MisterP123
    • By MisterP123 7th Aug 17, 10:19 AM
    • 161 Posts
    • 180 Thanks
    MisterP123
    • #8
    • 7th Aug 17, 10:19 AM
    • #8
    • 7th Aug 17, 10:19 AM
    I can echo the above. I'm with Santander. Completed late May, first payment came out beginning of July. Again, slightly higher as there was 5-6 weeks of interest to be paid.
    • SuboJvR
    • By SuboJvR 7th Aug 17, 11:19 AM
    • 455 Posts
    • 339 Thanks
    SuboJvR
    • #9
    • 7th Aug 17, 11:19 AM
    • #9
    • 7th Aug 17, 11:19 AM
    I can echo the above. I'm with Santander. Completed late May, first payment came out beginning of July. Again, slightly higher as there was 5-6 weeks of interest to be paid.
    Originally posted by MisterP123
    So in your case you paid a full normal monthly mortgage payment on the 1st July, plus the interest from late May until 1st July? You didn't pay on 1st of July for mortgage June + July, plus interest from late May to 1st July?

    Hope that makes sense! Aaagh so confusing.

    Thanks all for the help so far! Eases my mind
    • wantonnoodle
    • By wantonnoodle 7th Aug 17, 3:57 PM
    • 251 Posts
    • 171 Thanks
    wantonnoodle
    We completed with the West Brom (which is still a mutual BS) in February, and our first mortgage payment was exactly 1 calendar month following completion. Their policy is for first payment to be within 30 days of completion. After that, you can change the date of payment, providing there is one payment in every calendar month (so for example you can't pay first payment on 31st July, then phone in August to change payment date to 2nd of the month, as this would mean no payment would be made in August).

    The first payment was slightly higher than our regular payment, given it included interest covering the period since completion.
    • SuboJvR
    • By SuboJvR 7th Aug 17, 4:45 PM
    • 455 Posts
    • 339 Thanks
    SuboJvR
    Thankyou for the reply.

    It's all sounding like we will be paying rent up front, as always, for our last month, and then the mortgage payment should be either toward the end of that period or even later meaning hopefully not needing to dip further into savings to cover the overlap.
    • SuboJvR
    • By SuboJvR 13th Nov 17, 8:13 AM
    • 455 Posts
    • 339 Thanks
    SuboJvR
    I thought it only polite to update this now that I know the answer for myself, in case anyone else is wondering...

    We completed with Santander on 3/11/17. I've just called to confirm what happens, and the first mortgage payment is going out on my chosen date of 1/12/17. This payment is less than our standard payment, as Santander are collecting our account in arrears and their "month" runs from the 1st of the month.

    All of the paperwork I received up until this point was incredibly vague with no confirmation of exactly how the first payment would work. I had wondered if we would pay, in our case, interest for nearly all of November plus a standard payment on the 1st December. Fortunately not the case, and very helpful when we had to have 5 weeks of overlap with our rented property in order to avoid "gambling" on when to give notice.

    I think therefore that Santander being a bank, former building society must follow the bank "trend" for mortgage collection!
    Last edited by SuboJvR; 13-11-2017 at 8:16 AM.
    • mallen
    • By mallen 6th Mar 18, 5:03 PM
    • 46 Posts
    • 1 Thanks
    mallen
    Hi,
    I am also starting a mortgage with Santander and looking to complete the Friday 27th April. My question is will the first months mortgage payment be due 4 days later on the 1st or May or will they set it to the 1st June?

    Obviously I'd prefer the 1st June as it would give me more time to save a little extra before moving in.

    Thanks

    Mike
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

83Posts Today

2,292Users online

Martin's Twitter