My mortgage is paid on the 25th of every month by a direct debit.
I could change this payment to the 5th (as the money is waiting in my account).
I assume (perhaps mistakenly) that I then wouldn't be paying interest on the monthly sum for the 20 days of the each month.
Over the course of the mortgage, will this save me a significant amount of money or not?
If the answer is best illustrated by an example, please use these figures:
- Mortgage: £100k
- Duration: 20 years
- Interest: 3%
- Date change: 20 days