Paying Your Mortgage Weekly?

[Big Tav]

Hi all, Just working out what a home loan might cost me in the UK but I noticed that the Home Loan Calculators on UK sites only have the option to pay monthly.

In Australia you can pay Monthly, fortnightly or weekly to save interest. It makes a massive difference if you pay weekly over here.

Can you do that in the UK?

Cheers.

[Eric Mc]

Big Tav said:

Hi all, Just working out what a home loan might cost me in the UK but I noticed that the Home Loan Calculators on UK sites only have the option to pay monthly.

In Australia you can pay Monthly, fortnightly or weekly to save interest. It makes a massive difference if you pay weekly over here.

Can you do that in the UK?

Cheers.

Not to my knowledge.

Most people receive their salaries monthly so most standing order and direct debit type payments are also paid monthly.

[5pen]

Perhaps take a look at offset mortgages and ones that allow you to 'overpay' as a way to minimise the interest you pay.

[IanMorewood]

Yes you can.

[auditt]

IanMorewood said:

Yes you can.

With what lenders?

[Welshbeef]

auditt said:

IanMorewood said:

Yes you can.

With what lenders?

set up a standing order to your mortgage account weekly or daily if you want.
Offset is the best way all your savings accounts and current account balance are all linked to the mortgage account and int calculated daily.
You will unlikely get net int from savings higher than the mortgage int payable.

[anonymous-user]

Most banks will have a mechanism to allow you to overpay, some easier than others. Some will only allow overpayments above a minimum level.

[M-J-B]

MRSNEAK said:

Most banks will have a mechanism to allow you to overpay, some easier than others. Some will only allow overpayments above a minimum level.

Also some will allow overpayments below a maximum level, and only on some of their mortgage payments.

I'm with HSBC and they're pretty flexible. I have been overpaying my mortgage for years, over the last god knows how many by a factor of 5 which is reducing my term by a huge amount.

[wibble cb]

I overpay mine bi weekly, and as a result my amortization schedule is down to 11 yrs from 25....which suits me just fine.

try putting some figures into this:

https://www.rbcroyalbank.com/cgi-bin/mortgage/mpc/...

Its not 100% perfect, but it might give you some idea.

I seem to remember years ago there was a competition where the prize was getting your mortgage paid for a year, so the winner re mortgaged and paid it off in that year !! Am pretty sure you can arrange with your bank the level and frequency of payments that suit you, they just won't shout it from the rooftops.

[M-J-B]

wibble cb said:

I overpay mine bi weekly, and as a result my amortization schedule is down to 11 yrs from 25....which suits me just fine.

try putting some figures into this:

https://www.rbcroyalbank.com/cgi-bin/mortgage/mpc/...

Its not 100% perfect, but it might give you some idea.

I seem to remember years ago there was a competition where the prize was getting your mortgage paid for a year, so the winner re mortgaged and paid it off in that year !! Am pretty sure you can arrange with your bank the level and frequency of payments that suit you, they just won't shout it from the rooftops.

Pretty much the same as my circumstances.

I've reduced my term from 25years to just under 11 years by overpaying since inception. I'm also on a variable rate, 0.29 above base which helps!

[Fatman2]

First Direct's offset mortgage is fine too (and offered by arguably the best bank in the UK)