A lot of people don’t realise that they can switch from making monthly mortgage repayments to bi-weekly ones – but this simple change can save you money and help you pay off your loan faster
Want to slash your mortgage expenses?
You might want to consider a nifty switch – altering your repayment schedule from monthly to bi-weekly. By paying every two weeks instead of monthly, you can whittle down your mortgage balance quicker and save on interest in the long run.
This is because many lenders compute interest daily, so the sooner you reduce your balance, the less interest accrues. Typical lenders stick to monthly payments, yet several are open to manual bi-weekly payment arrangements.
To see if this option is available, you’ll need to get in touch with your lender. Some will give the green light as long as the total monthly sum is settled by the due date, reports the Express.
Making additional mortgage payments trims the interest tally and may also shave off future monthly repayments. Mike Plaster, mortgage and protection advisor at Millennium Mortgages, warns: “Each lender has its own rules, so always confirm any changes with your lender before making adjustments.”
Oren Kander, senior valuer at Gaffsy, said: “For those looking to cut down on interest payments, switching to bi-weekly repayments is definitely worth considering.”
