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MF step, interesting result...
Sideways
Posts: 124 Forumite
Hi all,
I wanted to share this bit of info with you, I thought it might be of interest to those who are on fixed rates.
I’ve been overpaying for the last eight years and have a plan to get us mortgage free within the next two years. Can’t wait!
I’m in the last year of a five year fixed at 5.2%, when this ends we will move onto an SVR of 2.5%- looking forward to that!
I had a spare 6k sitting in a savings account which had just come to the end of its bonus interest rate, the new rate was pretty poor so I decided to pay off a sub-section of the mortgage. I knew this would incur an early payment charge but I did the sums and worked out I would pay more in interest if I didn’t.
So I called my lender (C&G) and explained I was thinking about paying off a chunk and asked what the charges would be. To my surprise I was advised that if I arranged the payment immediately they would waiver the early payment charge. I went ahead and made the payment.
This simple transaction has saved me quite a bit of money, more than I was expecting when you consider the lender was within its rights to charge me an early repayment fee. Perhaps they need the money
Oh well, one step closer…..
I wanted to share this bit of info with you, I thought it might be of interest to those who are on fixed rates.
I’ve been overpaying for the last eight years and have a plan to get us mortgage free within the next two years. Can’t wait!
I’m in the last year of a five year fixed at 5.2%, when this ends we will move onto an SVR of 2.5%- looking forward to that!
I had a spare 6k sitting in a savings account which had just come to the end of its bonus interest rate, the new rate was pretty poor so I decided to pay off a sub-section of the mortgage. I knew this would incur an early payment charge but I did the sums and worked out I would pay more in interest if I didn’t.
So I called my lender (C&G) and explained I was thinking about paying off a chunk and asked what the charges would be. To my surprise I was advised that if I arranged the payment immediately they would waiver the early payment charge. I went ahead and made the payment.
This simple transaction has saved me quite a bit of money, more than I was expecting when you consider the lender was within its rights to charge me an early repayment fee. Perhaps they need the money
Oh well, one step closer…..
Father, Husband, Jogger, Painter. Mostly at the same time, except the jogging and painting bit, it didnt work out.
0
Comments
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Well done and if it saves you 5.2% tax free then you are one step ( £6000) closer to being MF0
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That's great!2019 fashion on a ration 0/66 coupons0
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OP,
Excellent result to be able to OP a lump sum on a FR mortgage without incurring ERC's. Does make me worry about C&G/LTSB though.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0
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