Redemption fees

rommers

Hi

We have a mortgage balance of £76,000 on a fixed rate for 3 yrs (22 yrs left on mortgage). I try and over pay as much I can.

My father has inherited a bit of cash and has offered to pay off the mortgage, therefore we pay him directly so we avoid paying interest.

Is this worth doing? I know it would save thousands in Interest, but how much would we likely be charged in redemption fees and other charges?

Anyone know a better way around making the most of the offer?

cheers.

R

caeler

It will depend on your mortgage deal. They are all different. Check your paperwork and it will tell you if you try to repay before your fixed deal is up. Or better still call them up Monday and ask. They'll tell you the redemption fee plus a completely up to date figure on what you owe in total.