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Mortgage overpayment

Hi there 

I'm currently paying the intetest on my mortgage in addition to my mortgage payment.

 I was watching some podcast that suggested paying your monthly over payment weekly lowers your monthly interest rate as opposed to paying monthly 
I'm not sure how accurate this is.

Cheers

Comments

  • CSI_Yorkshire
    CSI_Yorkshire Posts: 1,792 Forumite
    1,000 Posts Photogenic Name Dropper
    Doesn't change your interest rate.

    It might change the amount of interest, because on many mortgages the interest is calculated daily - so if you make an overpayment weekly rather than at the end of the month there is a slightly smaller balance to pay the interest on.

    If you make an overpayment weekly rather than a lump at the start of the month, the opposite happens.
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