If you have started your mortgage journey, you might be disappointed that your first mortgage payment is higher than you have ever thought of. It is common for most brokers so the first mortgage payment is higher than expected.

The reason behind the initial higher payment for a mortgage as compared to the other payments is for the technical procedures. As your mortgage starts at completion, and in some cases, the direct debit might not start immediately. The mortgage advisor in Spalding suggests how to choose the right mortgage and how to make the payments.

How to Calculate the First Mortgage Payment?

Before starting the mortgage, you must know about monthly costs, even on variable deals like the tracker rate mortgage option. The mortgage papers the lender gives will show the expected monthly repayment amount.

Therefore, it sometimes becomes alarming when the first payment exceeds the given document. Even the higher payment can cause panic among the people as they think something might have gone wrong. To know the first mortgage payment, you must keep in mind the factors like-

  1. The completion date
  2. The requested direct debit rate
  3. If the lender applies any standard variable rate for the first month

Why is The First Mortgage Payment So High?

The mortgage lenders will start with the new mortgage product and then start the product term from the time of completion. It means that once the re-mortgage is completed, the mortgage starts to become payable. In some instances, you might request a direct debit rate, which means that the first payment has a period of more than a month.

When the lender sets up the direct debit, it takes two weeks for payment to get authorised by the bank. The completion state might fall at that moment, and it will take around six weeks to make the first payment.

For instance, if you have a payment completion date on the 16th of this month and have opted for direct debit on the 28th of the month, it will be 6 weeks before the mortgage lender starts to have the first mortgage repayment from you.

If you know that the mortgage payment will be more for the first time, you can contact the Mortgage Advisor in Spalding. The expert will guide you in making payments for a mortgage. One can get help regarding anything on mortgage from David List Mortgage Consultants Ltd. The team offers mortgage-related advice to the users. Get in touch with them to know more about mortgage services.