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A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z
Letter I
Initial interest
The interest due between the date of completion and the normal date from which
an interest payment is normally charged. For example if mortgage payments are
normally due on the 30th of a month and the loan completes on 14th March, the
first monthly payment may be due one month from 30th March, on 30th April. Any
interest due for the period from completion until 29th March will be due with
the initial mortgage payment. Thus, the borrower's first mortgage payment will
normally comprise one full month's payment plus the initial interest.
When arranging your mortgage you should always remember that mortgages and their
interest is due monthly in advance. So if you expect to pay a full mortgage
payment the day you complete you will find there will be no nasty surprises.
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