The basics
There are 2 important dates to understand when it comes to your mortgage payments.
Your payment period is the window which you have to make your mortgage payments in.
When your payment period starts depends on when your mortgage completes.
For example, if your mortgage completes on the 10th of the month, your payment period would run from the 10th of each month to the 9th of the month that follows.
Your payment is always due at the end of your payment period, but you can choose to pay it earlier if that suits you better. This is called your chosen payment day.
Your chosen payment day is the day you make your payment each month.
You can choose to make your mortgage payment on any day from the 1st to the 28th of each month.
You can move this around to suit your finances best – you just have to make one full mortgage payment within each payment period.
How your chosen payment day and your payment period work together
Let's say your mortgage completes on 10 January, and you choose to pay on the 1st of each month.
Your payment periods and payments would look like this:
For payment period 10 Jan to 9 Feb, you'd pay on 1 Feb
For payment period 10 Feb to 9 March, you'd pay on 1 March
For payment period 10 March to 9 April, you'd pay on 1 April
... and so on.
When a payment becomes overdue
Your monthly payment is due on the final day of each payment period – so as long as you pay before the 9th of the month, your account will be up to date.
For example, let's say:
For payment period 10 April to 9 May, your payment on 1 May doesn't go through
We reach out to have a quick chat and make sure everything is OK
On 5 May, you ask us to reclaim your payment, and it all goes through
Because you made your payment on 5 May – before the end of your payment period on 9 May – this payment would be considered late, but not overdue.
Your payment would not technically be overdue until you ticked over into your next payment period.
Now, let's say:
For payment period 10 April to 9 May, your payment on 1 May doesn't go through
We reach out but aren't able to get ahold of you
You don't ask us to reclaim your payment
On 10 May, the first day of your next payment period, your late payment is becomes overdue.
At this point, because you didn't make a payment between 10 April and 9 May, your account would be in arrears and we would have to report this to credit reference agencies.
This is different from how other lenders tend to treat payment periods, so if this doesn't make sense to you, please reach out and we'll be happy to chat through it with you.
You can reach us:
via chat on our website
by email at [email protected], or
on 0330 808 1791.