Your mortgage is paid in arrears each month, which means you make monthly payments at the end of each month. 

The day your mortgage (the money you’re borrowing) is released from the lender, you start paying interest on it, even if this date is before the agreed start date of your mortgage. This means when you come to make your first mortgage payment, it might be slightly higher than your agreed monthly repayments. 

The extra cost reflects the interest paid on the balance in the period of time between the lender releasing your funds and your first “mortgage month’ starting. 

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