[Budd Hunsdale]

Budd Hunsdale  asked the Naked Scientists:
     
Hi Chris,
 
I listen to you on radio 702 with great interest but I'm not able to get through to you on the radio to pose my question which I really hope you can help me with;
 
On my home mortgage bond account is it better to set my monthly debit order payment on the 1st of each month, or is it better to set it a couple of days before the end of the month/1st of the next month in order to save interest?
 
I have heard various conflicting opinions from banks, friends, estate agents etc!
 
The point being something like this some say that one of the two above options will save you interest as you are paying your monthly instalment before that particular month' interest is added on, or something like that, which adds up to a lot of money over the years of the mortgage bond account.
 
Hope you can help
 
Many thanx
Budd

What do you think?

[Chemistry4me]

I think scientists are probably not the best people to ask.

[Don_1]

Not knowing where you are, it would be difficult to offer you any advice.

One thing I would say is don't listen to the banks. They have proved themselves incapable of keeping their own houses in order! Also their sole interest is in making money out of you!

If you are in the UK I would suggest you visit The Money Saving Expert web site. moneysavingexpert.com

[Chemistry4me]

Ah, [] What sort of world do we live in these days?
Too afraid to even trust our own banks! []

[chris]

I'm not really sure that it makes a huge amount of difference. Between payments one month will elapse upon which you will be charged interest on the outstanding sum. The interest is as a percentage of the total, so it shouldn't affect the total.

I am sure that's right - can anyone correct / update me ?

Chris