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Expats and overseas homeowners, do you want to save thousands in mortgage interest and cut years off your loan? The secret is in biweekly mortgage payments, a hack we’ve discussed with savvy investors for years and one I’ve personally used.
A recent GB News article spotlighted this strategy, and at Liquid Expat Mortgages, we’re here to explain why it’s a game-changer, especially for our global clients.
Why waiting a month costs you
With standard monthly payments, interest compounds daily over 30 or 31 days before your principal drops. That delay racks up extra interest. Split your payment in half and pay biweekly instead, and you’ll make 26 half-payments a year, the equivalent to 13 full payments, not 12. That extra payment hits your principal directly, shrinking it faster and slashing interest over time.
The compounding effect in action…
Here’s the maths:
- A £200,000 mortgage at 4% over 25 years costs about £116,000 in interest with monthly payments.
- Switch to biweekly, and you could pay it off in 21 years, saving over £20,000.
Why? Each biweekly payment reduces your principal sooner, so less interest accrues. It’s not about overpaying, it’s about timing. For expats dealing with currency shifts or overseas income, this maximizes your money’s impact without changing your budget.
Why Expats should jump on this
We’ve long recommended this to clients at Liquid Expat Mortgages. I’ve used it myself, and it works. Expats face unique challenges – exchange rates, taxes, cross-border finances – but this hack is simple and effective. The GB News piece backs what we’ve known: small timing tweaks yield big savings. It’s perfect for those wanting control over their mortgage, no matter where they’re based.
How to set it up (with a caveat)
Here’s the steps:
- Confirm with your lender: Ensure they allow biweekly payments without fees.
- Split and schedule: Halve your monthly payment and pay every 14 days.
- Time it right: Sync with your income to avoid cash flow issues.
Caution: The onus is on you to nail the timing. A missed or late payment could disrupt everything or hurt your credit. Automate it if you can, and check with your lender. If you need help, contact us at Liquid Expat Mortgages, we’re happy to guide you.
Learn more and save
This is just one tip we share with expats and overseas investors. Dive into our Top Tips section for more ways to optimise your expat mortgage. Whether you’re in Dubai or beyond, this hack could fast-track your mortgage freedom and keep more cash in your pocket.
Ready to start? Reach out today, we’d love to help!
Disclaimer:
The content of this article is provided for informational and illustrative purposes only and is not intended as financial, legal, or tax advice. Liquid Expat Mortgages is authorised and regulated by the Financial Conduct Authority (FCA) to provide mortgage and protection advice. However, the FCA does not regulate certain investment mortgage contracts, and any views expressed herein may include unconventional or contrarian perspectives that do not necessarily reflect standard industry practices or regulatory guidance. Your home or property may be repossessed if you fail to keep up repayments on a mortgage or any other debt secured against it. We are not authorised to provide legal or tax advice, and we strongly recommend consulting a qualified professional for personalised guidance tailored to your circumstances before making any financial decisions.
Liquid Expat Mortgages
Suite 4b, Link 665 Business Centre,
Todd Hall Rd,
Haslingden, Rossendale
BB4 5HU
Phone: 0161 871 1216
www.liquidexpatmortgages.com
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