First Mortgage Payment

[Irishrams]

Hi There,

I am currently going through the process of buying a house and had a question around when the first payment will be due.

For example if we complete on say the 28th September and have agreed with our lender that our Mortgage payment is to be taken on the 28th of every month when will the 1sy payment come out of our bank.

From reading around my understanding is a Mortgage is paid in arrears so from the scenario above the 1st payment would be due on the 28th October which would then consist of a Mortgage payment to cover October and any interest incurred for September after completion and before the cover period of 1st Mortgage payment.

Also as I know my Mortgage payment amount is there an easy was to work out what Interest would roughly be added to the 1st Mortgage payment.

Thank in advance for replies

[Shining]

Probably best to check with your mortgage provider to ensure you have correct information. Is this information not supplied in any documentation you've signed or received?

Maybe one of our other posters will know so hang in there

[Irishrams]

font size="1" face="Verdana, Arial, Helvetica">quote:<hr height="1" noshade>Originally posted by lesley_

Probably best to check with your mortgage provider to ensure you have correct information. Is this information not supplied in any documentation you've signed or received?

Maybe one of our other posters will know so hang in there

Yeah I am going to speak to my Broker on Monday to be sure. I have documentation but not read through it all so might have a quick check

[Irishrams]

Just read the mortgage terms which maybe I should have done 1st time

It states Mortgage payments will be taken on the 1st of the Month and also interest will be charged on top dating from the day of completion to the end of the month.

However where I thought a Mortgage was paid in arrears this states in the example a payment would be taken on the 1st May to cover May and then interest on top from the date of completion being the 15th April up to the 1st May.

It also states Mortgage payment are by Direct Debit and they will write to us shortly after completion on the exact amount and when due. So I presume if we complete on the 28th September say we will pay interest from the 28th Sept to the 1st October and then a Mortgage payment from the 1st October to cover October.

If this is correct my question is the Direct Debit would not be setup by the 1st October so do they just take the money once the Direct Debit is actually setup in October sometime or does itnot come out until 1st November?

[seagulls]

I think it would be best to ring your mortgage company to find out .They really need to let you know when the first payment is due.

[Shining]

I think sometimes with an additiconal payment to cover the interest aspect a change of date is possible to make it more suitable for you. Hope you get the answers you're looking for.