The TikTok Claim: Can Biweekly Payments Really Save You Money?
- KateD
- Feb 27
- 3 min read
The viral TikTok claims:
“Split your monthly payments into two bi-weekly payments, and you'll pay off your mortgage potentially 11 years earlier."
Let’s unpack and fact-check this statement.
Understanding the Biweekly Payment Strategy
The Biweekly “Extra Payment” Trick: Fact vs. Fiction
True: Paying every two weeks usually results in 26 half-payments per year, which is equivalent to 13 monthly payments. That extra payment helps lower interest and reduces the term length.
This biweekly mortgage "hack" is widely recognized and recommended by financial planners. Interest rates are typically calculated daily. Therefore, the sooner you make overpayments, the better.
Overpayments Early in the Term Deliver the Greatest Impact
Absolutely true: This strategy is highly effective. Early mortgage payments are mostly interest-heavy. By overpaying early, you directly cut down the principal, which dramatically lowers the long-term interest cost.
As one MoneySavingExpert forum user illustrated, “If you didn’t overpay £100 at the start of a 30-year mortgage at 5%, after 30 years that £100 would cost you around £332 in total interest.” (MoneySavingExpert Forum)
Overpayments made early equal interest saved on future interest. That’s compounding working in your favour.
The Real-World Example
By paying every two weeks, you make 13 full payments instead of 12. This effectively overpays your mortgage. Alternatively, you could increase monthly payments by about 8.33%. Any early overpayments, especially at the start, drastically reduce the mortgage term.
This week, I advised a client who was a first-time buyer. I suggested that adding £70 per month would pay £32,000 extra, trim four years off their mortgage, and save £92,000, netting a £60,000 boost.
Let’s run the logic:
Extra payments: £70/month = £840/year. Over a 25–30 year mortgage, these overpayments can indeed shave years off the term and significantly reduce interest payments.
Savings vs. overpaying: If your mortgage rate is greater than your savings rate, overpaying usually wins. You save interest you aren’t paying.
Magnitude: The example suggests paying £32,000 extra in total (≈ £70 × 456 months?) to knock four years off the term and save £92,000 in future payments. This yields a net saving of around £60,000. That’s plausible - if interest rates stay constant, early overpayments can swing hundreds of thousands of pounds in long-term savings.
To confirm the exact numbers, give us a call or book here and we’ll tailor the calculations to your exact loan amount, term, and rate.
What to Watch With Your Lender
You must confirm with your lender that extra payments are applied to the principal and not used to reduce next month’s payment. Reducing the next month's payment would simply buy a few days’ interest, not shorten the term.
Also, check whether:
They automatically recalculate monthly payments.
They have any fees for biweekly or extra payments.
The Importance of Early Overpayments
Why Early Payments Matter
Making extra payments early in your mortgage can lead to significant savings. The earlier you pay down the principal, the less interest you will pay over the life of the loan. This strategy is particularly beneficial for first-time buyers who may be looking to save money in the long run.
The Power of Compounding
Compounding interest works in your favour when you make early overpayments. By reducing your principal balance sooner, you decrease the amount of interest that accrues over time. This means that even small additional payments can lead to substantial savings.
Real-Life Scenarios
Consider a scenario where you decide to make an extra payment of £100 each month. Over a 30-year mortgage, this could save you thousands in interest and reduce your mortgage term significantly. It’s a simple yet powerful strategy that can lead to financial freedom sooner than you might expect.
Conclusion: The TikTok Claim – Myth or Smart Strategy?
Any overpayment is an opportunity to shave off months or even years and save tens of thousands, especially when done early. So, TikTok’s tip? Smart- but only if executed correctly.
Would you like help running actual figures based on a mortgage amount and interest rate? Book online now.