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Day interest is calculated.

Hi there,

If my mortgage interest is calculated on the last day of the month, when is the best time to make an overpayment or does it make no difference? :confused:

Comments

  • Welshlassie
    Welshlassie Posts: 1,731 Forumite
    Part of the Furniture Combo Breaker
    I'd pay it in a couple of days before the interest is calculated so that it has chance to credit, as long as it is sat in a high interest saving account before transfer it will help you accumulate a little more interest for your pocket not the banks.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Jet wrote: »
    Hi there,

    If my mortgage interest is calculated on the last day of the month, when is the best time to make an overpayment or does it make no difference? :confused:


    Check that the interest is actualy calculated on that day for the following month.

    Many like Barclays/woolwich will calcualte the interest daily but only apply it once a month.

    In this case pay the money as soon as you can to reduce the interest paid.
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