Making 2 payments in a month

Hopeless_Case

Someone told us about seeing if you could make 2 direct debit mortgage payments a month, so you're only paying the same amount but paying half of it earlier.

They told us that this could save a lot of interest, and I've tried to google it but have only come across US articles and I've no idea if it works the same way here.

I see no point in the other suggestion which was paying every 2 weeks so you make 13 payments in the year, as we have credit card debt which we want to tackle first, so we don't want to actually pay any extra into the mortgage, but I'm wondering if it's worthwhile before ringing the mortgage company

I've read that it depends on how your interest is calculated, and this is what it says in the t&cs:

9.2 Interest will accrue on the Amount You Owe at the
applicable Interest Rate from the day the First Advance
is made. Interest on the Amount You Owe accrues daily.
We will calculate interest on a daily basis, based on the
Amount You Owe at the end of the previous day.

Actually reading that it does look like it would help if they let us do it, has anyone had any experience of this?

julicorn

Our mortgage lender allows us to pay via standing order instead of direct debit if we want, so that could work for you?
Thing is though, the interest you save should be more the earlier you pay. So if you pay the full amount as soon as you can ( just after pay day), then that should work better? I think in the US, quite a lot of people get paid weekly or fortnightly, so that could make a difference here.
Also, the 13 payments in a year thing is just an easier / more manageable way of tricking you into overpaying:)

Hopeless_Case

Oh I see thanks - it's set to go out on 10th, which is a month after completion, and we did have to pay by DD - I guess that if they don't like the 2 payments idea, we could ask to bring it forward to the end of the previous month (ie 28 May rather than 10 June) when we're paid

beanielou

Set up the extra amount as a bill payment from your bank account.
Then you can send the extra as & when you like.