HELP! I want to make weekly payments but the bank is forcing me to pay monthly....

IaiChris

I have a mortgage question regarding repayments but not sure where to turn. It seems my bank (HSBC) have only one option to repay, which is by monthly Direct Debit. I would prefer to pay weekly, with interest being charged daily this makes financial sense to make a nice saving over the duration of the mortgage and ultimately pay it off quicker. However, after trying this over the last month by cancelling my Direct Debit and making weekly payments (which has actually put me slightly in front), HSBC have now contacted me saying this would go down as a missing payment on my credit score every month. So they are forcing me to have a DD in place to make a payment once a month.

Surely I should be able to settle my mortgage as I like, and not be punished for wanting to pay this off quicker. Of course they do allow 10% overpayment each year but this isn't what I am trying to achieve.

Any help around this would be much appreciated.

[Deleted User]

IaiChris said:

I have a mortgage question regarding repayments but not sure where to turn. It seems my bank (HSBC) have only one option to repay, which is by monthly Direct Debit. I would prefer to pay weekly, with interest being charged daily this makes financial sense to make a nice saving over the duration of the mortgage and ultimately pay it off quicker. However, after trying this over the last month by cancelling my Direct Debit and making weekly payments (which has actually put me slightly in front), HSBC have now contacted me saying this would go down as a missing payment on my credit score every month. So they are forcing me to have a DD in place to make a payment once a month.

Surely I should be able to settle my mortgage as I like, and not be punished for wanting to pay this off quicker. Of course they do allow 10% overpayment each year but this isn't what I am trying to achieve.

Any help around this would be much appreciated.

 No you pay your mortgage and interest is calculated according to the contract you signed when taking it out. 

[Deleted User]

They can surely ask for payment on their terms.

Any interim payments you make between the monthly ones will be regarded as overpayments - but you still need to make the contractual monthly payments on the specified date.

Sistergold

Weekly payments are something that come up a lot in American media when they talk about paying off mortgage early. I doubt British banks want to be doing so much book keeping and tracking for weekly payments! That’s said you can make overpayments as your contract permits. You would have signed up for whatever they are now insisting on. 

jennystarpepper

If they are telling you to pay by D/D monthly then this will be in the T&C you signed for when agreeing to the mortgage.  You will be in breach  of your terms if you do not pay as agreed and yes they can alter your credit rating.

Why are you wanting to change now, has something happened to make you want to pay weekly? 

When did you take out the mortgage and is interest showing on your account as charged daily?  I have a mortgage with HSBC, I overpay daily and my online account shows the interest for the month on the 1st, so my interest for March will show online as a total amount on 01.04.21.

IaiChris

Nothing has changed, I just heard about it so thought it was a nice way of reducing my mortgage without making additional payments, I can't really afford additional payments at the moment. Interest is accrued daily but it only shows once a month, as an example this months interest was £30 less than last months but I am back to paying monthly now so it will change again.

jennystarpepper

IaiChris said:

Nothing has changed, I just heard about it so thought it was a nice way of reducing my mortgage without making additional payments, I can't really afford additional payments at the moment. Interest is accrued daily but it only shows once a month, as an example this months interest was £30 less than last months but I am back to paying monthly now so it will change again.

Sounds the same as mine.  I understand what you are trying to do but you have no way of altering the agreement you made.

I would just suggest you look for alternative ways to help reduce your mortgage.  I make over payments all the time, these can be for pennies but it all adds up.  I have HSBC as a payee on my mobile app.   I earn extra money from things like Qm33, Stor3wards and various other apps and sites.  I send my spare change over so if my balance on my current account is £561.67 today I would send .67 to HSBC or what I can afford.  

Just try to 'chip' away at your mortgage.  Lot's of us do it and it does work.  Read peoples diaries for help.

Amend your D/D back to how it was, you will save yourself lot's of grief, it's not worth the hassle in the long run. 

p00hsticks

IaiChris said:

Nothing has changed, I just heard about it so thought it was a nice way of reducing my mortgage without making additional payments, I can't really afford additional payments at the moment. Interest is accrued daily but it only shows once a month, as an example this months interest was £30 less than last months but I am back to paying monthly now so it will change again.

Don't forget that months aren't all the same length - 'this month' probably had three less days in it than 'last month' (assuming last month went from the xth of January to the (x-1)th of February and this month was the xth of February to (x-1)th of March.

GeordieGeorge

How much do you think that you’d save by paying weekly?

jim1999

For what it's worth, unless you're getting paid weekly, I really doubt that making mortgage payments weekly would save you any money.

It just doesn't work like that.