Lump Sum or small amount payment off a mortgage?

An Cigire · 2018-12-13 18:47:02

My understanding is that my mortgage interest in calculated daily so accrues that way. Am I better then paying an amount for example €500 a fortnight off the capital or waiting and putting in €1000 a month? I’m trying to see if your better going in with a big amount like €5000 every 3-4 months or paying off smaller amount…

13-12-2018 07:47PM

#1

An Cigire

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My understanding is that my mortgage interest in calculated daily so accrues that way.

Am I better then paying an amount for example €500 a fortnight off the capital or waiting and putting in €1000 a month?

I’m trying to see if your better going in with a big amount like €5000 every 3-4 months or paying off smaller amount more frequently to bring down the capital balance and save on interest.

1

Comments

#2 13-12-2018 10:05PM

Henry Ford III

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Assuming the amount is credited against the capital immediately pay as much as you can as early as possible.

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#3 13-12-2018 10:11PM

LimeFruitGum

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I am on a fixed term, and doing a lump sum overpayment worked out better for us in terms of keeping the breakage fees down to a minimum.
You can contact the bank to advise on the fees against various overpayment options.

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