PTSB & Weekly or Fortnightly Payments

misterk

Registered User
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Hi folks, just curious is anyone here paying their mortgage back weekly or fortnightly with PTSB and if so did you have problems arranging it?
 
What I did was cancel the direct debit and pay in myself kind of monthly. The main reason was to avoid the bounce charge if the money was not there with a DD.
Paying with a higher frequency will save you money in the life of the mortgage, something the bank know and never advertise. I pay somewhere between 2 and 3 weeks. Set yourself up online with you bank to make a payment to the mortgage account whenever you want.
 
same as above, been doing it the last few years on a weekly basis,no problems arranging it
 
Paying with a higher frequency will save you money in the life of the mortgage, something the bank know and never advertise. I pay somewhere between 2 and 3 weeks. Set yourself up online with you bank to make a payment to the mortgage account whenever you want.

There is no big saving to be made simply by paying fortnightly or weekly.

Using the example of €100K @ 4% over 20 years total repayments are;

Monthly - €145,435.20

Fortnightly - €145,350.40, a saving of €84.80 over the 20 year term.

Weekly - €145,308.80, a further saving of €41.60 over the 20 year term.



However if you pay half your monthly payment every 2 weeks you are then making 13 payments annually instead of the required 12 and the savings are more substantial.

Again on €100K @ 4% over 20 years total repayment would be €139,823, a saving of €5,611 and the term would be reduced to 17 years, 9 months.
 
Thanks for pointing that out. I didn't go there because he is asking about it and I don't want to drift off the subject..
Good maths. I am aware of the savings - many others are not, sadly.
 
If they make you pay interest with it first, they get all their profit. When you start chipping into the principal at an early stage in the loan, they gain much less as twofor1 pointed out.
 
Thanks so for argument sake if your mortgage was 960 a month and you paid 500 every 2 weeks that would chip in to the principle quicker.

Can you just clarify your point there for me twofor1 on your first bit saying if you pay fortnightly it will make no difference in the long run and then your other fortnightly calculation.

Sorry for so many questions just want to br clear on it
 
Thanks so for argument sake if your mortgage was 960 a month and you paid 500 every 2 weeks that would chip in to the principle quicker.

Can you just clarify your point there for me twofor1 on your first bit saying if you pay fortnightly it will make no difference in the long run and then your other fortnightly calculation.

Sorry for so many questions just want to br clear on it



To reduce interest and your term you have to overpay.

If you simply tell your lender you want to pay fortnightly, they will calculate your fortnightly payment, there will be a minimal saving but as there is no overpayment there will be no significant saving or reduction in mortgage term.



If your monthly payment is €960 that would equal a fortnightly payment of around €440, by paying €500 you would be overpaying €60 which should come straight off the principal.

That’s €60 you will not be paying interest on for the remaining term of the mortgage.

The big savings are in overpayments whether they are monthly, fortnightly or whenever.
 
Hi all, I eventually got on to PTSB to arrange to pay my mortgage weekly but they are not complying entirely with my wishes.

Firstly I was told you cannot cancel your monthly payment and you cannot pay weekly in my branch, mortgage centre on the phone told me I cannot pay weekly, then rang back and another employee told me I could pay weekly just right a letter explaining what I want to do.

Wrote the letter telling them my wishes to have a weekly direct debit taken out of my account to pay directly into the mortgage. They are complying with that, but when the payment goes out it sits in the prepayments section on the open 24 website and builds up each week and at the normal monthly call date it is taken for the mortgage.

Contacted them and told them I wanted it to go in weekly and not monthly but they said I cannot do that, they are starting to wreck my head now.

Any advice ?
 
Wrote the letter telling them my wishes to have a weekly direct debit taken out of my account to pay directly into the mortgage. They are complying with that, but when the payment goes out it sits in the prepayments section on the open 24 website and builds up each week and at the normal monthly call date it is taken for the mortgage.

Contacted them and told them I wanted it to go in weekly and not monthly but they said I cannot do that, they are starting to wreck my head now.

Any advice ?
If this is how your bank deal with extra or weekly payments and your mortgage agreement doesn’t say any different, then I don’t think there is much you can do. They are facilitating you.

If you are overpaying, as long as overpayments are reducing the outstanding balance, even if paid weekly and applied monthly, then you are getting the benefit, you will reduce interest paid and your term.

If the outstanding balance was reduced weekly instead of monthly as you requested the additional saving would be minimal, see post 4 above.
 
But they are not actually taking any extra money off of the mortgage they just take the monthly figure
 
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