Initial interest is the amount of interest that will accrue from the date of your completion to the end of the relevant calendar month. It will be included in your first scheduled monthly repayment.
Should your mortgage complete on or before the 23rd of the month, your first payment will be on the 1st day of the following month. If your mortgage completion is after the 23rd of the month, your first payment will be on the 10th of the following month. Please check your offer letter - it will state whether your payments will revert back to the 1st or maintain on the 10th. If you would like to change your payment date between these two dates please contact us.
Due to interest being charged in advance, your first payment will include interest from the month of completion and the month you are paying in as the interest is charged in advanced. For example, if you complete on the 7th of September, expect the 1st of October payment to be a combination of the interest for the remainder of September and all of October.
To find out more please review our General Terms and Conditions which can be found on the Forms section of our website