Wanna be mortgage free. What should I do

pampam

My son's mortgage outstanding amount is £27500.
He pays £277.10 per month and has 14 years left to run. ( He borrowed a further advance to pay off some of his partners debts last year)
The mortgage is with the Halifax on their Standard variable rate.
I am sure he could pay this back quicker with a different kind of finance.
Is there any way of doing it without having to pay legal and arrangement fees?
Thanks
Pam

md_14uk

pampam wrote:

My son's mortgage outstanding amount is £27500.
He pays £277.10 per month and has 14 years left to run. ( He borrowed a further advance to pay off some of his partners debts last year)
The mortgage is with the Halifax on their Standard variable rate.
I am sure he could pay this back quicker with a different kind of finance.
Is there any way of doing it without having to pay legal and arrangement fees?
Thanks
Pam

Maybe, some lenders offer incentives should as legal fees paid to swich to their mortgages, they'll charge you for this in another way though!

You'd probably be able to save enough in interest over the term to make up for paying some fees up front by switching to a discount tracker or fixed rate.

gallygirl

The problem with such a low mortgage is that the legal, arrangement and valuation fees represent a disproportionate % of the loan, so any savings are wiped out. Also, many have a minimum amount of loan now.

If he stays with the Halifax, and is not going for a larger loan, they shouldn't require a valuation. His 1st step should be to contact the Halifax and see what they can offer - I phoned my mortgage company (egg) last year and they gave me a discount of 0.25% over the phone.

However, have just had a quick look on Halifax web site - they seem to have a minimum of 30k - maybe he could increase mortgage to this then pay back the extra immediately (make sure there are no penalties for doing this, but should be able to op by 10% of balance which would be fine).

The other alternative is to overpay on his current mortgage - even £50 a month would knock a few years off.

pc1608cop

I have an Interest only mortgage with the Abbey. I owe 110,000 from the previous mortgage, Ive since increased the mortgage to 172,000. The Mortgage is over a period of 15 years. I pay in total £835.98. I have a Pension each month which pays £1200. Is it possible for me to transfere my interest only Mortgage to a repayment mortgage, and would I be able to cover it with the £1200 pension I recieve each month. And how much more would I have to add to reduce the term of the mortgage to say 10 years. many thanks

gallygirl

http://new.egg.com/visitor/0,,3_11118--View_398,00.html

This link will take you to the egg mortgage calculator (can't link it all the way am afraid). Once you put in your mortagge details it will come up with a figure, then if you go to 'tailor my mortgage' you can fiddle with options.

Before you do though.......

£1,382.67 is the payment on a repayment mortgage over 15 years, - your pension doesn't cover it am afraid. 10 years would be £1,845.42:eek: :eek: :eek: :eek: