Key Takeaways:
- Your first mortgage repayment is often higher than your normal monthly repayment.
- Your first repayment often includes additional daily interest from the period between completion and your first repayment date.
- This is a normal part of how most UK mortgages are structured.
- Mortgage repayments typically settle into the standard monthly amount after the first payment.
What causes a higher first mortgage repayment?
Your first mortgage repayment is often higher because it can include interest covering more than a standard month.
When your mortgage begins, whether you are buying a property or remortgaging, interest starts being charged on a daily basis from that date.
However, your first payment is usually collected on a set date in the following month. If there is a gap between when your mortgage starts and your first payment date, that initial payment will cover:
- The interest built up during that period.
- Your first full monthly repayment.
Because this can be longer than a typical monthly billing cycle, your first repayment is often higher than your regular monthly payments.
For example:
Is the first mortgage payment always higher?
Typically, yes. While many borrowers notice a higher first repayment, the exact amount will vary depending on:
- Your completion date.
- The lender’s repayment schedule.
- Your outstanding mortgage balance.
- Your interest rate.
- The date your direct debit is collected.
Some borrowers may only see a minor increase, while others may notice a more significant one-off adjustment.
For example:
Mortgage balance: £200,000.
Interest rate: 4.50%
Normal monthly repayment: £1,111.
Completion date: 15th June.
First payment date: 1st August.
From 15th June until 31st July, interest will accrue on the mortgage before the first direct debit is collected.
Using a 4.50% interest rate, 16 days of additional interest in June would equate to approximately:
£200,000 × 4.50% = £9,000
£9,000 ÷ 365 × 16 days = £395
Your first mortgage payment may therefore look something like:
- Standard monthly repayment: £1,111.
- Additional accrued interest: £395.
Total first repayment: £1,506.
How do I find out how much my first repayment will be?
Most lenders will typically confirm how much your first repayment will be the next working day after your completion date via text or email, followed by a physical letter within 10 working days.
After this initial higher repayment, the additional interest will be cleared, and your repayments will typically return to the standard monthly amount outlined in your mortgage offer.
Frequently asked questions about first mortgage payments
- Why is my first mortgage payment higher than expected?
Your first repayment may be higher because it can include both your normal monthly repayment and additional interest accrued from when your mortgage begins and your first repayment date.
This is quite common and usually happens because there is a gap between your mortgage starting and your lender collecting the first direct debit. In most cases, repayments will then reduce to the standard monthly amount shown in your mortgage offer.
- Does mortgage interest start immediately after completion?
Yes. In most cases, mortgage interest starts accruing from the day your mortgage completes, and funds are released by your lender.
- Can I choose my mortgage repayment date?
Some lenders may allow you to select or change your payment date, but this will depend on the lender.
- What happens if I miss my first mortgage payment?
Missing a mortgage payment may result in additional charges and may negatively affect your credit score.
If you are concerned about making your first repayment, it is important to contact your lender as early as possible so they can discuss the support or options that may be available to you.
How can Cooper Associates Mortgages help?
Understanding how mortgage repayments work can feel confusing, especially for first-time buyers navigating the process for the first time.
Our expert mortgage advisers can help you understand what to expect after completion, how repayments are structured, and what this means for your monthly budget.
Whether you are purchasing your first home, moving house or reviewing your mortgage options, we can help you feel more confident and informed at every stage.
Get in touch to arrange a fee-free, no-obligation consultation and start your mortgage journey today.
