Paying off mortgage early redemption fee

kjmtoday

Hi

i have 37k left to pay on mortgage with barclays. i will have to pay 3% fee £1110 if pay off now. However if i leave it till sept 09 no fee to pay.

my thoughts are would i be better off paying the fee offset against the monthly interest i am paying. my payments are £583 per month. I have spoke to barclays but they wont advise me, so hope can get knowledge off this great forum.,:j

Peelerfart

I wouldn't even consider giving them £1110 .

What about the interest you could get from your 37K ? ,
and in Sepember it wouldn't be 37K you owe

kjmtoday

So leave it till sept then?

_Andy_

Agreed. Plus if you're thinking of switching lender it could easily take 6-8 weeks for completion anyway.
I'd wait.

kjmtoday

ok thanks. My rate is 1.490% does that sound right £596.69 monthly payment?

Peelerfart

kjmtoday wrote: »

ok thanks. My rate is 1.490% does that sound right £596.69 monthly payment?

Depends on the term you have remaining .Are you settling your mortgage or remortgaging ?

kjmtoday

i have 5yrs left and want to pay off in sept 09

Peelerfart

kjmtoday wrote: »

i have 5yrs left and want to pay off in sept 09

Put your money in the highest interest account you can find and sit tight 'til September ,then enjoy being mortgage free .:j

kjmtoday

yes thanks will do ....