Why Is My First Mortgage Payment Higher Than Expected?

Many homeowners are surprised when their first mortgage payment is higher than expected, but it’s a common part of how lenders structure repayments. In this series of FAQs, we’ve attempted to capture all the questions we are frequently asked so that you understand why it happens, how it’s calculated, and what you need to know to budget confidently.

Q: Why is my first mortgage payment higher than normal?

Your first mortgage payment is often higher because it covers:

• The partial month’s payment from your completion date to your first scheduled payment date.
• Your first full monthly mortgage payment.

Since your mortgage starts as soon as you complete, your first payment covers more days than a standard month.

Important to know: While lenders initially estimate this payment, once your completion date and payment schedule are set, the amount is precisely calculated down to the penny.

Q: Does this mean I’m paying extra for my first payment?

No you are not paying extra. While the first payment is larger, you’re not being charged anything extra.

Think of it like this, you’re simply paying for the extra days at the start of your mortgage that weren’t part of a full monthly cycle. This all counts toward your mortgage balance, and you won’t end up paying more over the life of the loan.

Q: How much higher will my first payment be?

The exact amount of your first payment depends on your completion date and chosen payment date.

To give an example:

• If your mortgage is paid on the 1st of the month, and you complete on the 15th, your first payment will be around 1.5x your usual monthly amount.
• If you complete just after your payment date, your first payment could be closer to 2x your normal payment.

Because your lender doesn’t know your exact completion date in advance, they initially estimate on the higher side to help you prepare. However, once everything is finalised, the actual payment will be calculated precisely.

Q: Do I make a larger first payment if I am remortgaging?

Yes. When remortgaging, your new lender’s first payment date may not align perfectly with your final payment to your old lender.

To avoid financial strain, we recommend setting aside an extra month’s mortgage payment as a buffer, or adding an extra month’s mortgage payment to the new loan requested. Any overlap in payments ultimately counts toward your balance, so you don’t lose out.

Q: Can I work out my first mortgage payment in advance?

You can estimate it based on your completion date, but your lender is the only one who can confirm the exact amount.

If you’d like a more precise figure, you can ask your lender once your completion date is confirmed.

Our advice is to budget for the worst-case scenario, it’s safer to assume a double payment than to be caught off guard.

Q: When will my first mortgage payment be taken?

Most lenders let you choose a fixed monthly payment date, but your first direct debit may take a few extra days to process especially if it falls on a weekend or bank holiday.

If your payment doesn’t leave your account immediately, don’t worry it’s normal for it to take up to 5 days the first time.

Q: Does my first payment include any extra fees?

No. Your first payment is not an extra charge, it simply covers the extra days before your regular monthly cycle starts.

If your mortgage includes any setup fees (such as arrangement fees), they will either:

• Be added to your mortgage balance, in which case you’ll pay interest on them.
• Be paid upfront, depending on what you agreed with your lender.

Your mortgage illustration will clearly show any fees, if you’re unsure, just ask your lender or check with us.

Q: Can I change my mortgage payment date to avoid a bigger first payment?

Whilst you can choose your mortgage payment date, this normally needs to be done well in advance of completion, so in practice, it is not realistic to change it once you know the completion date.

Q: Who should I ask if I need an exact figure for my first payment?

Your lender is the only one who can confirm the precise amount. While WR Ethical can guide you through the process, lenders calculate the payments themselves and so it is best to speak to them directly.

Final Thoughts

Your first mortgage payment might be higher than expected, but it’s completely normal and is calculated down to the penny once your dates are set. Most importantly, every penny of it counts toward your mortgage balance so you’re not paying extra overall.

If you have any questions about your mortgage payments or budgeting for your move, get in touch with WR Ethical we’re happy to help.