Mortgage overpayment strategy

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Hi there, I'm currently on a 1.74% fixed mortgage, paying £408 a month.
I'd like to set up a standing order for overpayments of £200 a month. Does it make a difference to reduce interest whether you overpay weekly, fortnightly rather than monthly? 
for e.g. either £50 weekly, £100 fortnightly or £200 a month. 

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  • longway2go
    longway2go Posts: 1,006 Forumite
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    It depends when your interest is calculated which will depend on your lender. I would call them and check. 
    Mortgage Aug 2019 161,000 :eek::eek::eek:Nov 2019 156,500:T Jan 2020 153,122:T, Apr 2020 149,500, Apr2021 139, 675, Oct 2021 136,823, Dec 2021 136,120🙂EF 0/12,000 (0%)😕 (5062.44 was ERC), Jan 2023 128,650. Our Mortgage is never going to be as high as it is today. :jOnwards and downwards to a better life for our family. :jJust keep swimming
  • julicorn
    julicorn Posts: 2,286 Forumite
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    @longway2go are there many UK lenders that don't calculate the interest daily? I just know that some add the interest to the account daily too, and some just add it once a month (but still calculate daily) - there might be ones that don't calculate daily, but I've not heard of any on this forum yet. 

    @geocatwest Generally speaking, the earlier you pay, the better (unless you can get higher interest in savings accounts, in which case saving in there makes more sense financially). So overpaying as soon as you have the money is generally better. £200 at the start of August > £50 every week in August > £200 at the end of August. Although the difference will be relatively small with the example given here. 
    Original mortgage: December 2017, £203,495
    MFW start: April 2018, £201,800
    Mortgage neutral: September 2022, mortgage redeemed: December 2022
    New house, new mortgage: December 2022, £276,007
    Current balance: £217,800 minus £8,300 overpayment savings pot
  • longway2go
    longway2go Posts: 1,006 Forumite
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    @julicorn tbh I'm not sure, I know there used to be do worth checking with the lender. 
    Mortgage Aug 2019 161,000 :eek::eek::eek:Nov 2019 156,500:T Jan 2020 153,122:T, Apr 2020 149,500, Apr2021 139, 675, Oct 2021 136,823, Dec 2021 136,120🙂EF 0/12,000 (0%)😕 (5062.44 was ERC), Jan 2023 128,650. Our Mortgage is never going to be as high as it is today. :jOnwards and downwards to a better life for our family. :jJust keep swimming
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