More Regular Mortgage Repayments

Another of months ago there was an articles in the Irish Times, stating that changing your Mortgage repayments from monthly to fortnightly payments (assuming your mortgage provider allowed you to do this!!) would save you thousands of euros off your mortgage over the lenght of the mortgage.

Can I ask is this true? I think yes there maybe a little saving i.e. the interest for a 2 weeks period off the half instalment of your monthly mortgage figure, but surely this saving is relatively small?? Or am i mis-calculating??

And if the arguement holds that you do make considerable savings, would these savings be further maximised by paying weekly (again assuming your mortgage provider allow you to do this!)

Would welcome peoples advice and ideas on this!

Here is a discussion of Conor's article

http://www.askaboutmoney.com/showthread.php?t=153737

To be fair to him, he published a full correction and apology a few days later.

There is little advantage making the same payment more frequently.

There is an interest saving in increasing your payments.

Brendan

Thanks Brendan, read through the long thread and seems to confirm what i was thinking. That its a very modest saving each month of the rate of interest of your mortgage on the value of half what your monthly mortgage payment was.

Though I'm right in saying that there would also be a modest saving in using the same logic and paying weekly (i.e 4 equal payments each month as opposed to 1 payment).

Myself and my wife get paid weekly, so it would be advisable for us to divide the monthly payment into 4 and make 4 of these payments each month? Would you agree?

Yes.

maccs said:

Another of months ago there was an articles in the Irish Times, stating that changing your Mortgage repayments from monthly to fortnightly payments (assuming your mortgage provider allowed you to do this!!) would save you thousands of euros off your mortgage over the lenght of the mortgage.

Click to expand...

And assuming that the lender calculates interest more frequently than monthly. If not then there is no saving. I don't know which, if any, lenders still don't calculate interest daily?