Paying mortgage off early

smreynard

I am inheriting some money from my father's estate and am planning to pay off my mortgage which stands at £22,500. I've heard, however, that there may be a charge for this. Is it worth leaving a small amount outstanding on the mortgage to avoid this charge?

Joe_Bloggs

Get a redemption quote from your lender. This will detail the charges to end a mortgage. I got the costs for redemption with my annual mortgage statement.
This, in my case, included early repayment charges. These occur when you are tied in to a deal so check your own circumstances. There are often fee free ways to make a series of overpayments. Many mortgages that are on standard variable rates have no restrictions.

There are the administrative charges linked to the end of a mortgage. Many relate to dealings with the land registry. Some lenders will charge an ongoing fee to ensure the safety of deeds . It is common knowledge that they are being put on a central computer. Some say they are only of personal interest. Get a look at the deeds and make your decision then.
J_B.