What date to overpay mortgage

[Violetroselily]

Cannot figure this out for the life of me

What date in the month should I make overpayments on my mortgage in order to maximise the benefits of overpaying? I gather it depends on when the interest is calculated?

These are my t's and c's:

"The interest rate is an annual rate. Interest
will accrue at the interest rate on the
mortgage debt on a daily basis based on
a 365 day year. Interest is debited to the
account monthly in arrears (calculated
on the number of days in the preceding
month) on each payment"

And "Payments made to reduce the mortgage
debt, including those that form part of the
monthly payment, will reduce the amount
on which we calculate interest from the
date payments are paid to the account.
Any interest which is not paid on the
relevant payment day will itself form part
of the mortgage debt and bear interest
from that payment day until it is paid."

I would email them giving your account number and request the information in straight forward english
Date to pay
Maximum amount accepted to pay
At least then you have a paper trail in case of future problems
If you ring them you have no proof if thing's go wrong as they often deny it

Hope that helps

As soon as you can if interest is calculated the way they describe.

I just overpay along with my regular payment on 1st month. Keeps it simple.

I think the key phrase is "interest will accrue... on a daily basis"

So the sooner you credit the account, the less interest will accrue.

The fact that they only update the account once a month doesn't alter the amount they change it by.

Yes, interest is calculated on a daily basis so it doesn't matter when you pay, except that if you are paying from an account that doesn't earn interest, you might as well pay as soon as possible, so you benefit straight away.

The statement about 'the interest rate is an annual rate' is just referring to what the rate is over the year, not how it is calculated.