Saving 100's

If that's so, your mortgage repayments must be about £100,000 a month, which means a mortgage of about £30,000,000.

Can't you pay for a bit of proper advice, rather than hang around here?

Are you saying your mortage is due on a certain date each month and you are charged a penalty for each day late?

In that case just bring the payment date forward, and arrange to have the funds available in your account (you must have liquid assets somewhere equal to a month's mortgage payment).

Even if you could have realised 5%pa from the money sitting in your current account this would amount to just over 1p/day for each £100 involved. But if this is a big deal for you, you can perhaps transfer to a linked savings account on the same day, and transfer back the next day, and do this online otherwise the cost of phone calls will wipe out any gains.

As others have pointed out it is not entirely clear what your issue is, as the interest rates you are quoting do not make sense.

I had a similar problem though - made even worse by using two different institutions. My salary was paid into my bank on the second last working day of the month and my mortgage payment needed to be paid to my building society by the end of the month. The only way it ever worked was if I physically took money out and paid it in to the building society in cash.

I paid an extra months interest and moved my payment much earlier in the month. So my pay now goes in at the end of the month and the payment to the building society is made on the 6th. I lost out in the year I did it, but when the mortgage statement came in at the end of the year it had 13 payments instead of 12- reducing the capital that subsequent interest payments were based on.

Neb

Well ....

On 31st December my mortgage was 56,029.51 On 1st January the Halifax took my mortgage payment out of my account but didn't allocate it to my Halifax mortgage until the next day. On 1st January my mortgage was 56,288.49 (258.98 interest added) On 2nd February my mortgage payment 494.93 was allocated to my mortgage and my balance is now 55,802.23 and not 55,793.56 ... so I've lost 8.67 somewhere? Or have I?

Ash

Touchy one aren't you?

Bitstring , from the wonderful person Ash said

Your interest appears to be about £8.67 a day, so yeah on 2/Feb you are £8.67 worse off than you were on 1/Feb. This is true pretty much regardless of what you paid when, unless you plan to pay off a very large chunk indeed. On 3/Feb you will be £8.67 worse off again ... and so on and so forth ..

Consider yourself lucky they calculate daily interest these days - int he bad old days they'd calculate it once a year, regardless of what you paid and when. Now THAT did allow some creativity.

OK, so your mortgage interest is about £258 per month, accrued daily at £8.67 or so (so that £258 wasn't added all at once on 1st Jan).

£8.67 represents approximately a 5.6% rate on £56,288. If that payment had been made a day earlier, you would have saved 5.6% of £494, divided by 365. About 7p. And I /think/ that's just a one-off saving, unless you make each successive month's payment one day earlier still, saving 7p a time.

It sounds like this is a flexible mortgage scheme. So it might be possible to put any spare savings into it, achieving 5.6% return (although I'm not sure how you'd get the money back out.)

Thanks for all your advice.

A further telephone call to Halifax has now established that the 'on-line' interactive banking system isn't all that interactive and not up-to-date. The details relating to the mortgage are just 'snap shots' and so, whilst I expected to see the amount owed, less amount paid and the current balance ... in reality you can see the mortgage before the next month's interest is added. the next day you can see the mortgage plus interest and the next day the figure is then changed to be the mortgage, plus interest, plus 1 further day's interest less monthly payment. As to why a huge multi million pound bank can't show you actual real time data I don't know.

So the missing 8.67 is in fact about 7p ... not even the price of a stamp to query.

As for putting more money into the mortgage. Yes you can and so you make a

5.6% saving tax free which is better then the vast majority of high street banks.

Ash