Weekly mortgage payment: Is it worth it?

So you finally did it. You signed on the dotted line and bought your first home. Congratulations! Now, for the next 15 or 30 years, you have to pay the mortgages. It seems daunting, but making that payment can help you to regain the equity of your home.

Currently, there are three types of mortgage payments available. They are monthly, biweekly and weekly. Most lenders provide monthly payment options to their borrowers. But in the weekly payments method, there is a chance of saving money on mortgage payments.

So in this article, we discuss briefly about weekly mortgage payments and their pros and cons.

Weekly mortgage payment

What is a weekly mortgage payment?

A weekly mortgage payment means paying your mortgage every week instead of every month. Here, the monthly payment is split into four equal payments and paid every week. Therefore, it allows you to pay off your mortgage faster by making 52 payments per year instead of 12. This can save thousands in interest charges.

How can you use weekly mortgage payments?

To use weekly mortgage payments, contact your lender. They will divide your monthly payment by 4 to determine your weekly payment amount. Then they will set up an automatic bank transfer. Most lenders offer this for free. After automation, you don’t have to remember to pay each week. They will automatically deduct the mortgage amount from your bank account.

Can I avail of a weekly mortgage payment in the UK?

Yes, the weekly mortgage payment is available in the UK. However, all the lenders may not provide you a weekly mortgage payment. Also, every lender has their own terms and conditions for mortgage payment. The best option is to contact your lender to learn more about the weekly mortgage payment method.

How does a weekly payment affect the total interest paid over time?

One benefit of paying your mortgage weekly is the potential to save on interest charges. When you make weekly payments, more payments go towards the principal balance. It reduces the principal amount and interest charges fast.

Mortgage interest is calculated based on your outstanding principal balance. The higher your balance, the more interest you owe. By making weekly payments, you’re paying money to your principal more often. So, your balance is lower more frequently. That means less interest in your mortgage amount.

For example, you take a £200,000 mortgage at 5% interest for 30 years. Your monthly payments will be £1,073. After 30 years, you will pay £1,86,512 only in interest. But with weekly payments of £268, you’ll pay £152,015 in interest. That means you will save £34,497 in interest and 4 years 9 month in time. Calculate your own mortgage amount here.

Weekly mortgage payment
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Can making weekly mortgage payments lead to a higher credit score?

Paying your mortgage weekly instead of monthly boosts the number of on-time payments. And it was reported to the credit bureaus each year. If you think that this consistent payment history will boost your credit score, then you are wrong. It will not improve your credit score. Because your credit score not only depends on payment history. It also depends on credit utilization, length of loan, types of credit accounts, and new credit inquiries.

Benefits of using a weekly mortgage payment

Making weekly mortgage payments instead of monthly can save you money over the life of your loan. Here are a few benefits of weekly payments.

Pay off your loan faster

By paying weekly instead of monthly, you’ll make 52 payments per year instead of 12. That means you pay the loan off sooner and avoid high-interest charges. In the lifetime of your mortgage payment, you can save thousands of pounds of interest charges by making weekly payments. For example, with a 30-year fixed-rate mortgage of £200,000 at 4%, monthly payments of £954 would result in paying £132,000 in interest over 30 years. Weekly payments of £238 would cut 8 years off the loan term and save you £41,000 in interest.

Potential interest savings

Some lenders may offer a small interest rate discount for choosing weekly payments. Because they also like to reduce the risk of late payments or default. Even a 0.25% lower rate could save thousands of money in the long run. Check with your lender to see if they offer any weekly payment discounts.

Smaller payment

Smaller weekly payments may be easier to budget than larger monthly payments. Paying each week automatically through the bank ensures that you never miss a payment. It will also save you from late fees and credit score damages.

Gain equity faster

The faster you pay down your principal balance, the more equity you’ll gain in your home. This means if you sell, you’ll get more money in your pocket. Weekly mortgage payments are one of the easiest ways to gain equity quickly.

What should you keep in mind when transitioning to weekly mortgage payments?

There are a few things you need to know before switching to weekly mortgage payments.

Lender Policy

First, ensure that your mortgage lender has a weekly payment method. If they allow weekly payments, then ask for the terms and conditions associated with weekly payments. Also remember, in the UK, all the lenders do not provide a weekly payment method.

Interest Calculation Method

Verify how your lender will calculate interest in your weekly payment method. If you fully understand the method, then you can easily calculate how much you can save on interest.

Automatic Payments

It is strongly advised to set up automatic payments. It ensures lenders receive your payment on time each week and prevents missed or late payments. Most lenders offer free auto-pay options. Enrolling in auto-pay may also qualify you for a small interest rate discount.

Payment Processing

Lenders, take a few business days to process your payment option from monthly to weekly. For this process, they may also charge you a little fee from you.

Payment timing

For weekly payments, timing is also an important factor. Always check that your fourth weekly payment does not come into a new month. If it comes, then your last month’s mortgage payment is not complete. So it costs you a late fee.

cons of Weekly mortgage payment

Drawbacks of Weekly Mortgage Payments

While weekly mortgage payments may seem appealing, there are some potential downsides to consider.

Limited Lender

Not all lenders offer a weekly payment method. This may limit your choice of lenders if you want a weekly payment option.

Additional fees

Some lenders charge fees for more frequent payment schedules. It is because of the additional administrative costs. It would increase your overall cost of borrowing.

Budgeting challenges

While smaller, more frequent payments may seem easier to budget, it requires stricter discipline. Your income and expenses are still calculated on a monthly basis. So you need to make another budget for your weekly mortgage payment. This may require some adjustment to ensure you have enough cash flow each week.

Is paying a weekly mortgage worth it?

Well, if you want to pay a mortgage faster and save money on interest, then you can pay the mortgage every week. However, for all homeowners, paying a weekly mortgage may not be suitable.

It will be suitable for those who have a weekly paycheck. Because it will help to manage your budget and ensure you have enough money to pay your weekly mortgage.

Other Ways to Pay down Your Mortgage Faster

Each contribution is important when paying off debt. Here are some other ways to pay off your mortgage.

Pay biweekly

You can also pay your mortgage biweekly instead of monthly. Splitting your payment in half will allow you to make an extra payment each year. This can also save thousands of interest charges.

Lump sum payment

Lump sum payment is also another option to pay your mortgage faster. If you receive a bonus from work or get a high business profit, put it towards your mortgage principal. Even relatively small lump sums of £1,000-£3,000 can make a big difference in your balance.

Round up

Rounding up your payments can accelerate your mortgage repayment. If your minimum payment is £1,325 per month, pay £1,400 or £1,500. Over time, these small increases will significantly decrease your principal balance.


Refinance is a drastic option, still, you can do it. It is a good option if you find a lower interest rate compared to your running mortgage interest rate.


Paying off your mortgage is a long process, but with some strategic moves, you can become mortgage-free in less time. One way to become mortgage-free sooner is by making weekly mortgage payments. It also helps to save money on interest charges. If you have a weekly cash flow or paycheck, then a weekly mortgage payment is good for you.

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Do weekly mortgage payments cost more?

No, paying weekly does not cost you more. It will cost you the same or less than the monthly payment. Because the interest is calculated the same way as a monthly mortgage. The only difference is you’re paying in more frequently.

What if I miss a weekly payment?

Missing a weekly mortgage payment can cost you a late fee. Also, it affects your credit score. Therefore, it is important to set up an automatic payment from your bank account.

How do I switch to a weekly payment?

To change an existing mortgage to weekly payments, contact your mortgage lender. First, they will check your mortgage term, then they change your payment frequency from monthly to weekly. There may be a small fee for switching payment schedules, around £50-£100.

Can any mortgage be paid weekly?

Yes, you can pay any mortgage weekly. But it mostly depends on your lender. Because all lenders may not provide a weekly payment method.

Can I switch back to monthly payments?

Yes, you can switch back to monthly payments at any time. Just, contact your mortgage lender and request the changes in payment frequency. They will cancel your weekly payments and resume your monthly payments again.

Disclaimer: All the information provide on this article only for informational purposes.  Please do your own research before taking any financial decisions.