Bi-Weekly Mortgage Payments

D

de_man

Guest
hello all,

i was doing a bit of research in to this payment method.

Say
you pay 1,000 per month X 12 months = 12K in payments for the year, but if you pay bi-weekly then it is 500 X 26 = 13K and doing this will save a hell of a lot in interest payments and in my case knock off over a year in my mortgage.

i checked with my lender EBS and they don't do it, anyone got ideas?

 
Then there will be 2 months in the year where you will have to pay 1500 in a calendar month.
I wouldnt like that option as I get paid on the last day of each month.
 
de_man said:
hello all,

i was doing a bit of research in to this payment method.

Say
you pay 1,000 per month X 12 months = 12K in payments for the year, but if you pay bi-weekly then it is 500 X 26 = 13K and doing this will save a hell of a lot in interest payments and in my case knock off over a year in my mortgage.

i checked with my lender EBS and they don't do it, anyone got ideas?
Click to expand...

In the above scenario, just over pay your €1000 per month by €83 and it will have a similar effect.
12 x €1083 = c €13,000
 
I asked twice before as this would mean me paying less interest, this is the reason the banks dont do it. I suggested that I was paid fortnightly and would be easier for me to pay it bi-weekly but to no avail...
 
I've been paying mine fortnightly with AIB from the start. Mind you, I took out my mortgage in 2005 so I have no idea if the option is still there
 
heebusjeebus, yes that's correct 2months of the year you'll pay 1500

NorfBank, it's kinda the same thing but the most efficient way imho is the bi-weekly option, it all depends on the way you calculate the interest.

Pyritepete, that's the line i took, i get paid every two weeks i said it would be very much easier for me to budget if my mortgage payment was taken as well at this time, they still wouldn't budge

Raymc, as far as i know AIB still has this option, but i have a tracker with the EBS and i dare not change from it.

Thanks for the replies, it's a pity EBS won't offer this option.

Thankfully, i have no problem (as yet) paying the mortgage but i can't see any reason why they won't offer this option even if it helps customers to budget more accurately & save a few euro.
 
PyritePete said:
I asked twice before as this would mean me paying less interest, this is the reason the banks dont do it. I suggested that I was paid fortnightly and would be easier for me to pay it bi-weekly but to no avail...
Click to expand...

That isn't the reason the banks won't do it. More likely it causes havoc with their systems.

All you are doing is paying a higher repayment amount for a shorter term. That is all. No magic.

If you want a shorter term, go to the bank and set a higher repayment amount - as someone else here said.
 
I pay my mortgage bi-weekly for the last 2 years. But the way it works is if you pay 1000 a month that is 12,000 a year so they then divided this by 26 weeks. So you would pay 461 every 2 weeks.
 
I looked into paying our mortgage weekly with PTSB, this reduces the interest as you are reducing the capital weekly rather than monthly. PTSB told me they don't do weekly payments on mortgages, however a member of PTSB staff told me that we could set up a SO weekly to our mortgage account, which would go into a holding account and the mortgage would be taken out of that when the monthly payment came due. So we set up a SO, cancelled the DD and it works similar to the offset mortgage. I.e. we have a balance in the 'holding account' which reduces interest and can be set off directly against the capital when the balance is €1300 or more. 1 payment equal to 1 mortgage payment reduced our term by 6 months.
 
I've being paying bi weekly for the last four years with Bank of Ireland, it's so handy as I get paid fortnightly.

J
 
You must log in or register to reply here.
Back
Top