Mortgage Payments during Draw Down

B

baboozled

Registered User
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3
Hi all,
A bit confused about when I start paying the mortgage and what the payments will be so hopefully someone who has been through it can help. I have just been approved for a mortgage for a self build with EBS.
Is the mortgage payments based on what you have drawn down so far or the whole value of the mortgage? So basically does the payments gradually increase after each draw down. Thanks
 
It would be based on what you've drawn down.

Did the bank not give you an amortization table to show you what the repayments will be.

Don't go mad and build another McMansion that you have no need for size wise, with too many bathrooms to clean and with a heating bill to break the bank.
 

Thanks Bronte! Haven't got any documentation from the bank yet just a phone call to say its approved. Dont worry I'm not, plan is to build a very eco friendly bungalow. I've seen too many McMansions up close.
 
Oh goodie, will you start a thread on your building experience. You might start with your figures.

I’m still surprised when you sat down with the bank giving you your options when and how much you will pay wasn’t part of the conversation.
 
Bronte it probably was people seldom take in the details, they want a house, the mortgage is just a necessary evil to getting there.
 
I do not get how you would apply for a very large debt without being given a simulation. How else would you figure out if you can afford it.
 
The bank figure out whether you can afford it or not, the approx repayments would definitely have been mentioned but again not everyone takes in this info, it will all be on the loan offer when OP gets it.

OP, you will pay payments on whatever you draw down, easiest way to figure out how much it's going to cost is just ask bank for 'cost per 1,000' then you can figure out what any amount of a drawdown will cost approximately, there will be slight variations but it's a good guideline.
 
Here the banks provide stimulations on the options you want. So that you can decide which mortgage suits you best. So I got a 10 year stimulation when I moved banks with different interest rates for me to make the choice. The tables would show the repayments from beginning to end. I picked 3/3/3 with max up or down of 2%. So I fixed for 3 years and then again for 3 years. On my online banking I can click and see how much the repayment will be with the amortisation table.
 
Of course I can afford it, I wouldnt have applied for the mortgage if not. I'm just organising my budget for during the build and I wasnt sure how the payments worked. Thanks to you with for the extra info, the specifics are very helpful. Your right Monbretia, we did discuss payments but I can't recall the whole conversation and was doubting myself.
 
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