Early settlement of 7 year mortgage

canavan

We are looking to pay off repayment mortgage (3 years paid of 7 year mortgage)
In doing this we will incurr an early settlement fee, should we pay off or set up an
account to pay off each month ?

Thank you
MC

RufusA

canavan wrote: »

We are looking to pay off repayment mortgage (3 years paid of 7 year mortgage)
In doing this we will incurr an early settlement fee, should we pay off or set up an
account to pay off each month ?

One of them!

Without ANY of the details it's impossible to answer.

Generally speaking it's usually worth paying off unless the settlement fee is excessive, and you can find somewhere for your savings that will achieve a high return!

You'll need to calculate the cost for each scenario and make the decision. If you need help with the maths, you'll need to post all the details.

HTH - Rufus

dimbo61

are you in a fixed term ?
Are you allowed to overpay and how much ?
Whats the ERC and does it go down each year?
How much interest are you paying on the mortgage and getting from your savings ?
Do you have other savings and lots of other things to consider AGE HEALTH JOB etc