ptsb terms and conditions "interest shall be payable wholly in advance"

[Brendan Burgess]

From the 2002 ptsb terms and conditions.

4.7 Interest shall accrue from day to day...
This is normal. The interest is calculated every day.

4.3 interest may be compounded at monthly or such periodic rests as ptsb decides.
Again, this is normal.

But the full text of 4.7 reads
Interest shall accrue from day to day but shall be payable wholly in advance.

I remember my first mortgage which was with ptsb (c.1990, they charged interest on the Annual Rest basis.
So on 1 January, if my mortgage was €50,000 and the interest rate was 10%, they added €5,000 to my balance on 1 January.
So I used to make advance payments in late December as much as possible and then made no payments at all for the first few months.
As the interest was calculated only once a year, advance payments reduced the interest charged while going into arrears did not affect the interest charged.

But 4.7 "interest shall accrue from day to day" seems to conflict with "shall be payable wholly in advance"

Brendan

 

[Coldwarrior]

I'm about to drawdown a mortgage with PTSB and planned to make monthly over-payments, are you saying there's no benefit in doing it monthly and I should just do a lump sum over-payment at the end of each year?

 

[Brendan Burgess]

I am not saying that at all. That was in 1990.

34 years later is is very different.

Interest is charged daily.

I don't know what that means about it being "payable wholly in advance"