When is the best time to draw down

[HouseHunter]

Our solicitor has just rec'd contracts so we should be closing fairly soon. I was told previously (although I dont remember exactly) that if you draw down at the start of a month you get a months grace with the payments.

I may be totally off the wall here but can anyone hed some light on this.

 

[Sarah W]

Depends on the lender - some have a collective payment date for all borrowers (for example First Active collect on the 25th of each month) - some take the first payment one month after completion. Unlike rent which is paid in advance, mortgages are collected in arrears. Check with your lender.

Sarah

www.rea.ie

 

[monkeyboy]

Yeah I drew down 1 day after the "cut off" point and had 1 month plus the balance of the previous month. ( about 58 days before I made 1st payment )

 

[HouseHunter]

Yeah I drew down 1 day after the "cut off" point and had 1 month plus the balance of the previous month. ( about 58 days before I made 1st payment )

Does that mean you made 1 months payment after 58 days or did you have to pays 1 month + the balance?

Cheers

 

[MugsGame]

Bear in mind that even if you get a month's grace, you'll end up paying extra interest to cover it.