Mortgage interest. Does it make a difference when you complete?

[marshmellows31]

I will hopefully be completing the first or second week of November (date not agreed yet) and I'm trying to figure out how the mortgage interest works.

I know that the first payment will be higher (I've budgeted for this) and will be taken the following month, but does it make a difference if you complete at the beginning or end of the month?

My normal monthly payment will be £544 so I assume it will be another £500 or thereabouts when I make the first payment?

Sorry if I sound thick, but I'm a first time buyer and it's all a bit confusing!

It doesn't make any difference at all when you complete, just that the earlier in the month, the higher your first payment will be.

Yes, interest is calculated daily, so the first month you'll pay more, and then it will go down to the usual amount. Your bank will send you details how much and when it will be collected, but I can't remember when they do that - probably once the money is drawn.

we were told it's better to complete towards the end of the month so the first payment isn't as high

Interest starts accruing as soon as you’ve bought the property so I would put aside x amount per week from the date you complete then you won’t be caught out by a high initial payment (which is variable deoending on when you complete.

Yes, it makes a difference.
But the difference is so small, it is not worth adding it to the list of complexities about agreeing a completion date.
You are basically adding a few more days interest against 25 years of interest (ie 9000 days)

If you are the bottom.of a chain then you have the least restrictions of anyone in terms of timing for buying. Please don't stress everyone else out by demanding an end of the month exchange as over the course of the mortgage it won't make any real difference. And congratulations. First house is a very exciting thing. Enjoy it.

I do agree it makes a tiny difference and the main thing to focus on is finding a date that suits everyone in the chain.

It doesn’t make any difference! The only thing is that your first payment is higher based on when you take ownership. Assuming you pay on the 1st of the month, and you complete on the 2nd Nov, then you pay capital and interest from the 2nd, so on 1st Dec you’ll pay almost two months mortgage to cover you from 2nd Nov to 31st Dec. If you move on the 28th Nov, then it’s from the 28th Nov to 31st Dec You don’t pay any more interest if you complete earlier in the month beyond what you’d be paying anyway for the days you own the house. If you’re worried about making a double mortgagee payment in the first month, then either you’ve overstretched yourself, or you’re panicking over nothing :)