Thank you for your time Brendan.Making 13 payments instead of 12 a year, makes a big difference.
Making a payment 2 weeks earlier than scheduled, makes very little difference.
Your monthly payment is €1200
If you make a payment of €600 two weeks early , you will save
€600 x 2.55% x 14/365 or 60 cents if my calculations are correct.
So over a year, you will save €7
Brendan
Who is your current lender?Mortgage: 300,000
Term: 30 Years
APR: 2.55% Fixed for 5 years (I would imagine I could only consider a forthnightly approach after the fixed rate has concluded and moved to variable)
My lender is Haven, with a 5 year fixed payment of 2.55%.Who is your current lender?
Of course there is. Your right to repay early is enshrined in law. However, the lender has a right to calculate an early repayment charge, which could be zero.No option to overpay during this time unfortunately
But that's precisely what making fortnightly repayments would be.No option to overpay during this time unfortunately.
But that's precisely what making fortnightly repayments would be.
Sorry I should have been clearer, no option to overpay without incurring breakage fees I like some banks allowing 10% monthly.Of course there is. Your right to repay early is enshrined in law. However, the lender has a right to calculate an early repayment charge, which could be zero.
Break fee is only calculated on the bit you are repaying early. It could well be zero. And even if there is a break fee, it will always be less than the amount of interest you will save.Sorry I should have been clearer, no option to overpay without incurring breakage fees
Unless you're being paid fortnightly, I don't see the point.When I mentioned making fortnightly payments it would be paying the same monthly amount but split over two payments a month instead of one.
OK - say your repayment is €1,000 per calendar month currently.When I mentioned making fortnightly payments it would be paying the same monthly amount but split over two payments a month instead of one.
Two payments per month is not the same as fortnightly.When I mentioned making fortnightly payments it would be paying the same monthly amount but split over two payments a month instead of one.
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