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Lump Sum or small amount payment off a mortgage?

  • 13-12-2018 7:47pm
    #1
    An Cigire
    Registered Users Posts: 250 ✭✭


    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.


Comments

  • #2
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,727 Mod ✭✭✭✭Henry Ford III


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


  • #3
    LimeFruitGum
    Registered Users, Registered Users 2 Posts: 1,004 ✭✭✭LimeFruitGum


    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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