Date Of Mortgage Payments

GETITPAID

At the moment I pay my mortgage on the 29th of each month.I was told that mortgages should be paid on the 1st of the month as it saves interest. On contacting my lender they said i must pay back to back payments on the 29th of August and then 1st of September then it will revert to the frst of each month. Cant really afford two payments within 3 days. Any suggestions how to get round this.

getmore4less

Go back to the person that told you this and ask them to explain why changing the date by 2-3 days makes a difference and exactly how much it will save you.

Most* mortgages these days the interest accumulates on the daily ballance and added once a month usualy at mortgage payment date so moving the date makes a small** difference over the life of the loan

What the mortgage company have told you is you can move the date forward from the 29th to the 1st not back which is reasonable, this would cost you more over the life of the loan which defeats the objective of moving the payment in the first place.

In most cases it is best to pay of any debts(mortgage) as soon as you can and this is for most people the day you get paid.

* check how interest is calculated for your loan(look at the T&C's).

** 100k loan @5% 25y £584.59pm, max saving is £3.42pm or £441 total over 25y, the reality will be less.