If you pay forthnightly, you end up making 26 payments a year (52 weeks divided by 2) not 24 (12 months * 2).Hi , We have a mortgage over 13 years and pay monthly - It is with AIB and at a tracker variable rate. I have read somewhere that I could save money on the mortgage by instead repaying fortnightly ? Have many people done this and does it make sense ?
Thanks
Basically yes. It works on the exact same idea. Some additional savings may be made through paying a little early, but worth pointing out that additional payments are being made. You can check how making the additional payments manually would compare by using one of the online mortgage calculators.....would work exactly the same way as by me paying off a sum of money off the mortage extra each year