Making Halifax mortgage overpayments online?

lvm

I got confused with the exact same thing.

As soon as they register an overpayment to your mortgage account, they also add interest on since they last calculated it.

E.g if they apply the interest on the 1st of every month and you make a payment a few days before this, most of the month's interest will be applied to the account.

If you can go for a full month without making any overpayments or make them well in advance of the monthly payment and interest being applied, you'll see that the balance comes down to less than what it would have been if no overpayment had been made.

It took me a few days to understand what they were talking about but there's definitely no need to worry about the balance.

james3333

OK Thanks for that.
as long as there is no 'best time within the month to overpay' then?

lvm

james3333 wrote: »

OK Thanks for that.
as long as there is no 'best time within the month to overpay' then?

Well, as interest is calculated daily, the best time to pay is as early as you possibly can as every day you put off making an overpayment, the most interest you'd pay (although negligible on an individual basis, it would add up over time).

Personally, I try and make overpayments either before or on the date my monthly payment comes out (26th) so that by the time interest is calculated on 1st, the balance is as accurate as it can be (although seemed to miss that this month...bummer!)