Cashback Remortgages · First-time buyers
Your First Mortgage Payment Explained
Your first mortgage payment is often larger than the regular amount, which surprises many new owners. There is a simple reason for it.
Why the first payment differs
Lenders usually charge interest from the completion date to the end of that month, then take your normal monthly payment. So the first payment can include that extra interest plus the first full month, making it higher.
Your mortgage offer or welcome pack sets out the exact dates and amounts.
Plan for it
Make sure the funds are in your account for the first payment date and check the payment date suits your income. Contact the lender if the amount is unclear.
Sources and further reading
General mortgage information, not a personal recommendation. Lender criteria and scheme rules can change. Ask an adviser about your circumstances and a solicitor or tax adviser about legal or tax questions. Your home may be repossessed if you do not keep up repayments on your mortgage. Most buy-to-let mortgages are not regulated by the FCA.
Discuss the next step for your mortgage
Understand your options before you make a decision.