Query on overpayments

moozer_2

Hi All,

Hope this is the right place to post this... I'm making overpayments on my mortgage. It's a mortgage which has daily interest added. Is it better to pay one overpayment a month or drip feed the money in over the month? I can't work out whether the latter would be better or not?

Thanks for your help!

Martinslovechild

I don't think that it would make a terrific amount of difference, but if you get paid weekly, then it would certainly be worth making weekly payments rather than waiting until the end of the month to make one payment.

getmore4less

Basic rules on any debt

Borrow as liitle as you can
For the shortest time
For the lowest interest rate.

Then you check how the debt is structured and adjust.

So for daily interest* where any overpayments reduce the capital then pay as soon as you have the money.

So beware the possibility they accumulate the overpayments towards a regular payment.


*IN most cases I think daily interest is calculated daily but is actually added monthly I know mine is.

moozer_2

Thanks both for your help. Hadn't thought about when the actual interest was added - will ring the lender and find out!

Thanks again!