When are overpayments calculated?

When does the bank calculate it?? Read this on another site earlier

it’s crucial to time any extra repayments correctly. Money put towards the mortgage only counts after the calculation is made; so don't put your money in too early as it won't have an impact and you'll miss out on interest you could’ve earned in a savings account.

First establish how the mortgage interest is calculated; call the lender and ask if need be. If it’s daily there’s no problem. If it’s monthly, quarterly or annually, ask for the date the calculation is made.

Then arrange to make the mortgage overpayments a few days before the calculation is made.


I personally overpay willy-nilly, although only by a small amount.
Currently have a tracker with KBC and am wondering if by paying x-amount in extra per week/month am I going the wrong way about it (I put in €200 per week); should I put extra in on a certain date?

Thank you

The first question you should be asking is whether you should be overpaying a tracker at all. A lot of PTSB's customers are annoyed that they have been overpaying when there is now a bonus for doing so.

Some very old mortgages, probably 20 years old, calculate interest annually. No recent mortgage does. I would guess that KBC does it daily. If they do it monthly, then you are losing very little.

Pay €800 on average two weeks early. Interest foregone - say 3% per annum = 0.1% per fortnight = €0.80 per month. So it's costing you less than €10 per year to pay it every week if they calculate interest on a monthly basis.