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Relevance of mortgage term?
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sread81114
Posts: 18 Forumite
This may well be a really stupid question - but I guess this is the right place to ask it!!
I have a fixed rate (4.99%) mortgage with Nationwide fixed for 10 years over a period of 15 years.
Whilst I appreciate that there are early redemption penalties if I pay off my mortgage before the end of the fixed rate period, am I going to be penalised if i can pay it off in full before the 15 year term?
I am currently making small overpayments each month and roughly estimate I will have a balance outstanding of £11,000 at the end of the fixed rate period. However, I am hoping that I will be able to increase my overpayments as the years progress with the intention of being mortgage free by 2015!!
Any advice will be gratefully received.
Thankyou!
I have a fixed rate (4.99%) mortgage with Nationwide fixed for 10 years over a period of 15 years.
Whilst I appreciate that there are early redemption penalties if I pay off my mortgage before the end of the fixed rate period, am I going to be penalised if i can pay it off in full before the 15 year term?
I am currently making small overpayments each month and roughly estimate I will have a balance outstanding of £11,000 at the end of the fixed rate period. However, I am hoping that I will be able to increase my overpayments as the years progress with the intention of being mortgage free by 2015!!
Any advice will be gratefully received.
Thankyou!
March 07 - mortgage outstanding £42,364
Overpayments of £58.27 each month & additional funds from my Neopigmy! (Moneypig!!)
No credit cards outstanding :T
No store cards outstanding :T
0
Comments
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Once you drop on to the BMR (AKA SVR) rate you do not face overpayment penalties at this time. Some say that the previous range of early repaymen penalties apply to you rather than those recently advertised on their web site.
J_B ( A Nationwide Mortgagee.)0
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