Mortgage advice

ivegotasillyusername

I have a mortgage over 30years, im 1 and a half years into the mortgage. its a 5 year fixed rate of 5.96%

i have just recieved a payout of 45,000£ and i want to put this money into my mortgage and reduce my payment period.

What is the best way to do this? it will cost me just over £4,000 to buy out my mortgage.

thanx :money:

oh yeah forgot to add this:

the mortgage was for 82,000, property cost 92,000 and I placed a £10,000 deposit on it initially.

lynnexxxo

A lot of lenders will allow you to make overpayments. Quickest thing to do is phone up your lender and ask if you can make an ovrepayment and if there are any charges for this.

ivegotasillyusername

my lender is birtania, what does an overpayment mean?

slummymummyof3

You will probably be allowed to pay an amount for example 10% of the mortgage amount in each year without being charged early redemption penalties. If you have any paperwork referring to your mortgage, it should be detailed in that. It might be that you took out your mortgage in April (therefore you can over pay 10% without penalty) then in May you could over pay another 10% without penalty (but no more in that year) The longer into the fixed rate you are the less the early redemption penalty is. Hope that makes sense???

ivegotasillyusername

yes that makes sense i will get on the phone to them now :T

ivegotasillyusername

just rang, they said that i can pay an extra 499£ per month without penalty

Trying_to_be_good

Did you ask if you can make a penalty-free lump sum repayment, too? Sometimes you can do both.

ivegotasillyusername

Trying_to_be_good wrote: »

Did you ask if you can make a penalty-free lump sum repayment, too? Sometimes you can do both.

yes i did ask and they said that was not possible