Advice on mortgage 'pay off' penalties please?

Faston

Could the wiser minds on this board please advise?

I have about £6000 remaining on my building society mortgage repayments which are due to end in late 2008.

I'd like to pay it off now but understand this can be a complicated procedure involving penalty payments.

Any suggestions would be most gratefully recieved.

Dan29

£6000 is the total amount left to pay before you have completely paid your mortgage?

Are you currently on the standard variable rate, or a fixed, discounted, capped rate etc which would mean you are liable for an early repayment charge if you pay off the mortgage? Or are you still in a period when you're liable for an early repayment charge due to a previous rate you were on?

ctabuk

Do not switch lenders, all lenders charge fees. Merely write to your lender and ask for the redemption figure including the deed release charge, then if you have the cash pay it and enjoy the savings in monthly costs.

cattie

ctabuk wrote:

Do not switch lenders, all lenders charge fees.

There is scant chance that switching lenders would even be an option with such a tiny mortgage. Most mainstream lenders require a minumum amount they will lend on a property, usually over £25000.

What the poster needs to do is check the terms of their mortgage documents to see if they are tied into any kind of redemption penalty. If not, then there will just be a mortgage dishcharge fee which varies from lender to lender. Seems to average out between £175-£250.

If you are unsure of the terms of your mortgage then give your lender a ring & they will be able to explain things to you.

Faston

Thank's to all for some great advice.:beer: