Mortgage Payment Interval

Vertuas

Hi All,

I have been thinging about my mortage repayments recently, and i have come up with a simple way to save a fortune. Some one else has probably already thought of it but i was wondering if it could be done.

Since interest on most mortages is caculated on a daily basis, could i not set up the daily direct debit for afew pounds, to avoid the daily interest compounding over a month?

Or even a weekly direct debit to pay the interest on a weekly basis. Rather than on a monthly basis.

The mortgage would be paid off earlier due to interest not compounding.

Thanks

David

BMWobbleU

Vertuas wrote: »

Hi All,

I have been thinging about my mortage repayments recently, and i have come up with a simple way to save a fortune. Some one else has probably already thought of it but i was wondering if it could be done.

Since interest on most mortages is caculated on a daily basis, could i not set up the daily direct debit for afew pounds, to avoid the daily interest compounding over a month?

Or even a weekly direct debit to pay the interest on a weekly basis. Rather than on a monthly basis.

The mortgage would be paid off earlier due to interest not compounding.

Thanks

David

Good idea, same as One Account http://www.oneaccount.com/