Should i change my mortgage payment day

carlw

Hi,

My mortgage is with NRAM, i get paid on 21st of each month but I dont pay my mortgage payment until the 1st. Assuming my mortgage interest is calculated dailey (i havent checked yet) I just wondered whether changing my payment day would have much of an effect?

Thanks Carl

Thrugelmir

Yes it would have an effect. Possibly small at first, though will compound as the months pass.

How much is your monthly payment?

What is your mortgage interest rate?

getmore4less

With changing mortgage payment date the maximum saving over the term of a morgage is the same as paying one full extra payment

example:

So a £100k at 5% over 20 years is £660pm

If you keep the payments at this level and make the extra one you save around £1124 in interest but most of that is from the overpayment(£4.40) and paying off a bit early.

If you overpay by one pyment and keep the term the same by reducing the payment to £555.60 you save £393.


Moving the payment by 10ish days rather than the full 30ish will reduce this maximum saving.

Finding £10pm will save £1667

carlw

I already over pay every month, but only by £120.

Im on the SVR which is currently 4.78% and my normal monthly payments are 680 (i pay £800).

Thanks for the responses. I suppose any saving is a saving and as it makes no difference to me i should just change the day.