Making weekly mortgage repayments?

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PrivateI

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I would like to know if it is possible to instruct your bank to make weekly instalment payments to your mortgage account instead of one single monthly payment?
 
Depends on the lender. You'd need to ask. Presumably you are already aware of the benefits (in terms of reducing overall interest costs) of doing this as long as your lender calculates interest more frequently than weekly?
 
A friend of mine wanted to do this a few years ago. At the time he found out that NIB at allowed 2 weekly payments. I don't know if its still the case.
 
Camry said:
This can be used as a way to accelerate repayment. Kepping you repayment the same and moving to 4 weekly means you make 13 instead of 12 payments per year.
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And you are also chipping away at the capital outstanding more quickly so the total interest bill over the term of the mortgage will be less.
 
It would be good to know of any banks that allow one pay on a weekly basis.
 
There are also lender who offer current account/offset mortgages - and not just those that advertise them. However some current account/offset mortgages do charge a higher rate and sometimes additional account maintenance fees compared to alternatives.
 
ClubMan said:
And you are also chipping away at the capital outstanding more quickly so the total interest bill over the term of the mortgage will be less.
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That would explain why they don't want you making weekly payments.
 
Who? Specifically PTSB as mentioned earlier? We don't know for a fact that most or all other lenders don't facilitate this repayment approach.
 
Hence my earlier post !;)

I guess I should have asked which Banks/Building Societies allow payments this way rather than just Banks
 
Hi there,
I am with NIB and I make weekly mortgage repayments. I moved from PTSB this year as NIB offered a better rate and also they allow weekly repayments.
We also make a weekly over-payment of 80euro, in doing so we will reduce our term from 30 years down to 19 years.
I found a calculator that allows you to calculate savings when you pay your mortgage weekly.
[broken link removed]
 
Bank of Ireland have the following on their website. However while they appear to be flexible if you are on a variable rate they do not mention the ability to structure your repayments weekly!

[broken link removed]

Paying off your Mortgage Sooner

Paying off at a faster rate offers you savings on the amount of interest charged, together with either reductions in the term of the loan or the instalment. If you have a variable rate mortgage and are in a position to make additional payments, the following options may interest you

  • Index linking
    Allows you to increase your monthly repayments by a percentage of your choice, on an annual basis, reducing the interest you are charged.
  • Fixed overpayment
    Paying an additional specified amount each month. The additional amount each month will reduce your overall balance. If you are on a fixed rate, you can pay an additional €65 per month.
  • Fixed increment
    Similar to the overpayment option above, but instead you pay a set amount over the standard installment each month. If you are on a fixed rate, you can pay an additional €65 per month.
  • Maturity date reduction
    You may prefer to reduce the maturity date of your loan, by paying off more each month, reducing your balance at a quicker rate.
  • Lump sum payments
    You may lodge a lump sum to your mortgage account. On a variable rate mortgage, the capital sum may be reduced at any time without penalty.
Flexible Options

Bank of Ireland Mortgages has developed a number of flexible options to suit customers changing circumstances during the term of the mortgage. These options are available to both variable and fixed rate customers.

  • Flexible Month Allows
    you repay a slightly higher amount over 10 or 11 months each year so there is one or two months where you have no repayments at all.
  • Mortgage Break
    Gives you the opportunity to defer the repayments for three consecutive months, up to four times during the life of your mortgage.
  • Level Pay
    Variable rate customers only can make the same monthly mortgage repayment each month over 12 months with repayments re-calculated at the end of the year to take into account any increases/decreases in rates during the year.
  • Term Reduction
    Gives you the flexibility to reduce the term of your mortgage.
  • Split Package
    A split rate mortgage allows you to split the loan between annuity and endowment and/or fixed and variable.
Bank of Ireland Mortgages is conscious of the financial burden involved in buying your first home, with this in mind we have tailored flexible options for the first time buyer.

  • Deferred start
    If you are a new first time buyer you can choose to have the first three months of your mortgage repayments deferred.
 
Thanks for your comments. I don't see why any bank can dictate the frequency of your repayments as long as they are reasonable...weekly in my opinion is reasonable. Using the calculator provided in the last post the savings one can make are massive. I'm at a loss why more people don't know how a simple change in repayment frequency can ultimately save you thousands in interest payments. It must be the banks best kept secret!

Using 365online I have set up a weekly standing order to my mortgage account for 1/4 of my monthly payment. Once this is set up and debiting weekly I will cancel the monthly direct debit(can do this online aswell). Lets sit tight and see what happens!
 
PrivateI said:
Using 365online I have set up a weekly standing order to my mortgage account for 1/4 of my monthly payment. Once this is set up and debiting weekly I will cancel the monthly direct debit(can do this online aswell). Lets sit tight and see what happens!
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You need to be careful here and agree explicitly with the bank in writing that such transfers will be used as capital/interest payments and not just lodged as a credit to the account. Don't just set up a weekly SO and then cancel the monthly one without agreeing it with them first or you could find yourself missing repayments. And they probably need a DD rather than an SO since they will need to vary the amount paid from time to time.
 
When I approached PTSB they said they were not set up to accept weekly payments. They then quoted their mortgage terms and conditions saying that you must pay monthly by DD.
 
I have just in the last week taken out a mortgage with the PTSB.

The GF wanted to make repayments each week, so what we done was set up a free current account with the PTSB, We're going to transfer the weekly equilvant into the PTSB Current Account each week, and then the monthly mortgage repayment with come out of this PTSB Current Account.

I thought that was the easiest way around the situation.
 
Kluivert said:
The GF wanted to make repayments each week, so what we done was set up a free current account with the PTSB, We're going to transfer the weekly equilvant into the PTSB Current Account each week, and then the monthly mortgage repayment with come out of this PTSB Current Account.

I thought that was the easiest way around the situation.
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That will make no difference to the total interest costs of the mortgage. This thread is about accelerating mortgage repayments and reducing overall mortgage interest costs by paying, for example, weekly rather than monthly. This is not what you're doing here.
 
ClubMan said:
That will make no difference to the total interest costs of the mortgage. This thread is about accelerating mortgage repayments and reducing overall mortgage interest costs by paying, for example, weekly rather than monthly. This is not what you're doing here.
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OK, while that was my initial thought, I thought the OP was looking for the mechanism for making repayments weekly. I should really read the full post rather than the OP's opening post.
 
I've was told today by Ulster Bank Mortgages head office in Georges Quay that they do not have any facility to take weekly direct debit (or otherwise) payments where the sum is taken off the capital each week.

The only option suggested to me was that the local branch could set-up a facility whereby they deduct the money from me weekly but that it is only passed on to the mortgage account monthly. As already stated this does not have any reducing effect on the interest.

They also stated that they were not aware of any plans to introduce this facility in the near future.

To be honest, the girl on the phone acted as if she didn't know what I was talking about. I find this hard to believe. A person working in a mortgages dept. never hearing of customers wishing to pay weekly in order to reduce their interest!!

They are obviously just pawning people off. :(
 
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