Hi,
I managed to sort this out myself.
In case it helps someone else clueless, I found I only needed to delete "DATE" (or "Date") and then literally just type "MERGEFIELD Date_first_payment" in its place.
I thought as I was changing it from the Word "DATE" value to a merge field that I would need to do Insert Merge Field (as you "always have to use the UI").
However on this occasion, as the structure I needed was already there, this was inserting extra brackets around the merge field which I didn't need.
Thanks,
Andy.T