Putting lump sum onto mortgage

SuzkinSuzkin Forumite
517 Posts
Part of the Furniture 100 Posts Combo Breaker

I'm thinking of putting a small lump sum onto my repayment mortgage, to knock down the capital in one go, and was wondering when the 'best' time might be during the month (if the timing would make any difference to the balance/interest)?

My mortgage payment direct debit usuually comes out at the beginning of each month, and I intend to make the payment in cash over the counter.

Any ideas or comments? Thanks


  • You need to find out how your interest is calculated. If it's daily then whack it on straight away. If it's monthly ask your lender what date they use to calculate the interest then pay it in the day before.

    Remember if you're paying by standing order etc. to allow time for payment to clear.
  • JonbvnJonbvn Forumite
    5.6K Posts
    Part of the Furniture 1,000 Posts
    It depends whether your mortgage interest is calculated daily or yearly - check with your lender on this.

    If paid daily, make the payment ASAP. If yearly, make the payment just before the day they calculate the interest for the next year.

    I assume your mortgage rate is higher than any available ISA rate?
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
  • SuzkinSuzkin Forumite
    517 Posts
    Part of the Furniture 100 Posts Combo Breaker
    Thank you both!! Interest is calculated daily.

    The mortgage is less than £10k, but looking at the statement, most of my payment is going towards the interest, on a 14yr term. I'm determined to see the balance go asap, since it is so low.
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