Understanding Your First Mortgage Payment
Congratulations on completing your mortgage! Whether you’ve just moved into your new home or are finalising the paperwork, your first monthly payment is just around the corner. But many clients are surprised to find that their first mortgage payment is higher than the rest. Don’t worry—this is completely normal.
Why Is It Higher?
Your first payment often covers more than one month’s interest, depending on your completion date. Here’s why:
- Prorated Interest: If your mortgage funds were released mid-month, your first payment will include interest from that date to the end of the month.
- Extended Payment Period: Some lenders combine this with your regular monthly payment, meaning your first payment could cover up to six weeks.
- Lender Processing: Each lender handles first payments slightly differently, and the exact amount and date will be confirmed after completion.
Examples of Lender Practices
Here’s how some lenders typically manage first payments:
- Barclays: First payment is taken on the 16th of the month after completion.
- Halifax & Lloyds: No payment until the following month; may adjust based on your preferred date.
- Nationwide: Sends confirmation within 5–7 working days post-completion.
- HSBC: No payment collected within the first 28 days.
- TSB: First payment may not align with your preferred date, but you’ll be notified.
Should I Cancel My Direct Debit?
No—never cancel your mortgage direct debit.
Doing so can trigger penalties, missed payment fees, and even damage your credit score. If you’re concerned about affordability, contact your lender immediately. They’re more likely to help if you reach out proactively.
Can I Delay My First Payment?
While you may be able to adjust your payment date, it’s best to prepare in advance. Once your completion date is confirmed, ensure the funds are available in your account. Managing this is your responsibility, and your broker should have explained it during the application process.
FAQs
Can I reduce my mortgage term?
Yes, many lenders allow overpayments or increased monthly payments to shorten your mortgage term. Always check your agreement first, as some lenders charge early repayment fees.
Need Help Understanding Your Mortgage Payments?
At Emily’s Mortgage Services, we’re here to guide you through every step of your mortgage journey. From first-time buyer advice to remortgaging and lender communication, our support is clear, friendly, and often fee-free.
📞 Call us today or book a free consultation to get personalised advice.
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