1st months mortgage - Is it x 2

S

Suzys1972

Registered User
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Was just wondering if the 1st months mortage is like the 1st months rent - i.e. one month & one in advance.

Just so as I can pass out peacefully if this is the case ..........
 
No, your first month's mortgage payment is only for that month. So if you take your mortage out on say the 5th of the month, then your first payment will be due the 5th of the following month and only for one month's payment will be due.

Hope this helps.

Juppie
 
Not necessarily the case, some banks run all their direct debits on one particular day of the month, which could mean that although you drawdown on the 5th of the month for example, your first repayment may go through on 1st of following month, so you will only pay interest from the 5th - 1st, so repayment might be smaller on first month. You should be issued with a re-payment letter detailing initial and ongoing payments. But you certainly do not pay 2 months in month 1!!
 
Quest said:
Not necessarily the case, some banks run all their direct debits on one particular day of the month, which could mean that although you drawdown on the 5th of the month for example, your first repayment may go through on 1st of following month, so you will only pay interest from the 5th - 1st, so repayment might be smaller on first month. You should be issued with a re-payment letter detailing initial and ongoing payments. But you certainly do not pay 2 months in month 1!!
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God, can you imagine if you did have to pay 2 months in month 1, that would be horrific!:eek:
 
Suzys1972 said:
Was just wondering if the 1st months mortage is like the 1st months rent - i.e. one month & one in advance.

Just so as I can pass out peacefully if this is the case ..........
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Yeh i had to ask about this too..had visions of all of november sitting in my lovely new apt freezin and eatin breadcrumbs cos i thought more than the mortgage would come out of my account as im closing next week!Make sure you ask your solicitor to confirm the date you want your first payment to come out!
 
You should be issued with a re-payment letter detailing initial and ongoing payments.
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When does this get issued/who issues it? I don't think this info came with my loan offer.
 
It should issue with/or at same time as Loan Cheque as that is when the initial repayment is calculated.
 
Great, thanks Quest. I'm not quite at that stage yet, so will keep it in mind and make sure to ask.
 
Just to note that the majority of non-conforming (subprime) Lenders all charge their Monthly Payments in advance - not arrears like the Prime Lenders.

There is only one Specialist Lender that charges the client monthly in arrears like a Prime Lender - all others are in advance

eg - Payment Charged in Advance

Case closes on15th of August for €250,000 over 25 years @6.45%.
Completion Interest charged - €751 (interest on the amount from 15th of Aug to 1st of Sept) & Monthly Payment = €1680pm

On the 1st of Sept - You would have to pay completion interest plus the first payment in advance = €2431​


This is standard with all but one of the non-conforming Lenders




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