To pay bills weekly, monthly or yearly with offset mortgage?

Hi,

I have an offset mortgage and was wondering is it better for me to pay things such as council tax on a weekly, monthly or yearly basis to give the most interest/savings on mortgage interest or does it not matter?

To me it seems paying things yearly would be better as it leaves all the cash against the mortgage for a year but then when you come to pay its obviously a lot less than if you paid weekly for bills? Over the course of a year does one way work out better than the other?
Thanks :)

Replies

  • warby68warby68 Forumite
    2.6K Posts
    Part of the Furniture 1,000 Posts Name Dropper
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    You have the right general idea - keep your cash as long as possible.

    However most household costs need paying for either upfront or within whatever terms the supplier offers. Very few, if any, offer payment in arrears at the end of 12m. Also watch out as more favourable terms often come with higher prices. Equally some things attract a discount for early payment.

    If you have a 0% credit card for purchases you can probably achieve what you want. Keep your cash until the 0% is up and take whatever is the best deal from each supplier along the way. A mixture of offset and stoozing.
  • hi_hohi_ho Forumite
    5 Posts
    Thanks for your reply.

    If upfront is unavoidable then paying (if possible) in the shortest time periods is best as it allows for smaller deductions from the money against the mortgage but if in arrears best to go as long as possible (excluding any early repayment offers)? This is if not doing any 0% credit card stoozing.

    I will definitely look into 0% purchase cards and offsetting and stoozing at same time. Thanks!
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