The short answer: it can be higher because interest starts from completion, not from the first normal payment date. Some lenders collect the interest for the days between completion and month-end as well as the next regular monthly payment.
For example, Nationwide explains that if it releases mortgage funds partway through May, the first payment in June can include interest for the rest of May and the normal June payment. That is one lender's process, not a rule that every lender follows in exactly the same way.
Why the figure may not match your usual payment
The monthly figure in a mortgage illustration is normally the ongoing scheduled payment. The first payment can be calculated differently because the mortgage starts on the completion date, which may fall anywhere in the month.
Depending on the lender and the date you complete, the first payment could be higher, lower or simply paid on a different date from the one you expected.
What to check
- Your lender's letter, app or online mortgage account after completion.
- The amount and date of the first Direct Debit.
- The regular payment amount due after the first one.
- Whether the lender has asked you to set up or confirm a Direct Debit.
If the amount still does not make sense, ask the lender to explain the first-payment calculation. It is better to check than to leave a payment date unclear.
Plan for completion costs as well
The first mortgage payment is only one of the cash-flow points around moving. There can also be moving costs, legal fees and bills connected with a new home. Seeing the first payment in context can make it less of a surprise.
