Best time of month to draw down mortgage?

[landmarkjohn]

Is there a best time of month to draw down a mortgage? i.e is the 1st of the month just as good as the end of the month or the middle, or could the lender charge you a monthly payment and X number of days interest on your first payment?

 

[dewdrop]

i dont know if there is any interest implication but would suggest you line up the payment a few days after receipt of your salary assuming you are paid monthly

 

[gipimann]

From my memory, there's usually one month's grace after drawdown - e.g. mortgage drawn down in March, first payment not due until April.

I suppose the earlier in the month the mortgage is drawn down, the more time you have before you have to make the first repayment!

The tip on aligning your salary & repayment date is a good one - you might like to check if your lending institution has a specific repayment date (e.g. EBS mortgage repayment date is 7th of the month).

 

[mcb]

As the previous poster said check with your lending institution on what dates you can pay back your mortgage. With Bank of Scotland you have the option of the 7th, 14th or 21st of each month.

 

[twofor1]

With NIB, whatever day you draw down the loan, that’s then your repayment date (or the next banking date if it’s a Sat/Sun or bank holiday) So drawdown on 23/04/08, first repayment 23/05/08

Interest is added on the last banking day of the month, so in the above case you would only pay seven days interest for April.

They don’t all work the same so check your Terms and Conditions.