Paying off Cheltenham & Gloucester Mortgage

georgeandjacobsgrandad

Hi thanks for your replys.

No fees have been added at all and there is no indication of them being added as no figures or amounts are shown on any of my statements that bump the price up.

I have made an appointment on Saturday to find out why it is higher than before despaite the interest rate being reduced by 2.49% and the extra £56.48 per month.

As I now have the money is it worth paying the mortgage off in full and what pitfalls will i encounter if i do as i understand there is no early repayment fees now.

thanks

TrickyDicky101

If it's more useful to you to have the £6k odd remaining balance in cash (at a very cheap rate of funding ie 2.5%) then keep the cash - the interest rate is so low (and the remaining term so short) that rises in interest rate will only have a very minimal impact on what you have to repay. It is worth considering what rates you might earn on the money if you had it invested somewhere - in a tax paying account (ie non-ISA) then assuming you are a basic rate tax payer, you would need a gross interest rate of 3.125% to match the 2.5% cost on the mortgage; while if you are a higher rate tax payer, then you would need 4.167%. It is unlikely (but maybe not impossible) that you will find an account that provides these rates of return.