Paying Off the Mortgage - Is there a downside?

nearlyrich

Our last lender holds our deeds as we still owe £100 (I think it's £100) on our mortgage. So strictly speaking I am not mortgage free but it feels pretty good.

humfer

Regarding redemption fees don't most mortgage providers wave these if the balance owed is below a certain amount?

susank

I have been in touch with our mortgage lender and we have no redemption fee or anything so on Tuesday (trumpets blaring) I will go into the local branch and will pay off our mortgage 6 years early and courtesy of a lovely inheritance for which I am eternally grateful. No debt - hoorah at last!

Jays

CONGRATULATIONS

:dance: :dance: :dance: :dance: :dance:

I am so jealous, I want to pay mine off now too. But we have been overpaying, and have brought our's down from 11 years to 4/5 so far.

I'm still plotting and planning and overpaying.

Jays

susank

Jays I have overpaid from the beginning and brought it down by 18,000 so its now nice to pay it off completely - of course we lived throught the 15+ % in the 90's - boy was it hard then so it was relatively easy then to overpay when this went down so much. You will do well - keep going = its a lovely feeling.

Jays

Hi susank

Yes, we lived though the 15%+ too, but since then we moved to a bigger house - with a bigger mortgage too, otherwise we would have paid it off by now, duh.

On the plus side, our capital replayment mortgage is now less than the interest only mortgage we had at our last house, so we are doing something right.

Good luck, enjoy the debt free feeling, I can't wait.
Jays

angelatgraceland

The life assurance endowment will send you a cheque when it matures. What you do with it is your responsibility. If you have a mortgage, put it towards that or pay it off but if you haven't, it's yours to spend/invest.The endowment is totally separate the the mortgage itself-it's merely the safety measure to make the risk worth taking for the bank/building society who lend the money. Mine pays out soon(Standard Life) with a shortfall of £3000 approx. I was well aware of this years ago and prepared for it and I've overpaid anyway and I'm actual overpaid on the mortgage by £35! That will be swallowed up by the buildings insurance though which I stupidly agreed to pay monthly on the mortgage payments(extra interest). I will change this arrangement when the mortgage is officialy redeemed which at the moment, it isn't.