Making weekly mortgage repayments?

ButtermilkJa said:
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.
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Yeah - that's what's called an interest free loan from you to them!
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.
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I don't to be honest. Many people (even those in the industry) don't realise that there is nothing magic about monthly repayments and that you can save by accelerating mortgage repayments.
 
ButtermilkJa said:
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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Given my experience with many financial institutions here, I'd say she genuinely didn't have a rashers - I find staff in Irish banks to be almost uniformly ill-trained and ignorant of even the most basic parts of their business.

I have for years had an image of staff in most bank call centres/customer-facing roles as being about 23 and busily saving up for their year in Australia...what they regard as the boring details of customers' finances only gets in the way of their having a 'laff' and talking about their upcoming 'gap year'. Maybe I'm just getting old :D
 
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ClubMan said:
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.
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I'd like to keep this post on topic if possible! I want to find out what is the exact instruction you need to give your bank to instruct them to deduct mortgage repayments weekly instead of monthly and to have this weekly repayment credited against capital outstanding. The banks are obviously only too aware that a weekly decreasing capital balance will be less profitable for them than a monthly one when it comes to interest calculation.
 
You need to tell them that you want weekly rather than monthly repayments to be treated as normal (albeit accelerated) annuity (capital plus interest epayments). They may or may not be amenable to/facilitate these. The total weekly repayment will not be credited against capital since all regular repayments are capital plus interest. In short you need to agree with your lender that your normal annuity repayments will be done weekly rather than monthly.
 
BOI will facilitate weekly repayments. All I need to do is send in a letter stating that I would like to change the repayments to a weekly structure and they will set it up. Has anyone reading this post actually tried doing this already?
 
hi folks great forum in case you have not heard of it the mortgage professors website will answer most questions on mortgages
 
wishing said:
the mortgage professors website will answer most questions
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Had a quick look and found the following article which suggests that savings are negligible if you go bi-monthly payments. The "savings" occur when you switch to fortnightly payments and this is because you are making 26 repayments a year as opposed to 24.

But surely you have to instruct the bank to take your monthly repayment divided by 2 every fortnight otherwise they will charge you a lower amount more frequently ending up with the same term.

E.g say your mortgage repayments are €1000 per month = €12000 per year

If you simply switch to fortnightly you will pay €12000 / 26 = €461 every 2 weeks.

Instead if you instruct the bank to deduct €500 every 2 weeks you are actually paying €500 * 26 = €13000 per annum explaining the reduction in term.
 
Hi
I'm not able to get any calculator on screen on: [broken link removed]
except the 'how much can I borrow' one, despite choosing the correct calculator(s), as it seems to go back to the same one the whole time. Has anyone else had the same problem? Or is there another site anyone can recommend that will do weekly calculations rather than bi-weekly?
Weekly repayment seems like an excellent idea, but do you need to pay an increased payment per annum to get the benefit (as suggested by din0saur), or will there not be a benefit purely because the repayments are accelerated because of the weekly repayment structure? :confused:

Edited: sorry, just realised that weekly repayment means in itself an increased payment (ie 4 weeks extra payment per annum)
also weekly calculator http://www.dinkytown.net/java/Biweekly.html
 
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