Really dumb mortgage question

wendyloub

I'm looking at getting a mortgage for around 20k, to pay off my ex husband, I will take out a mortgage over 20 years but will aim to pay it off, in say 4 years, I have been told that I won't be able to pay it off in the first two years without penalties, but after that I should be able to.

So here's the stupid question, if the interest is 1.99% will I only have to pay around £400 a year interest for those four years? making a total payback of 21600?

That interest figure is from the first company I approached, will obviously try to get better than that, also was surprised at the fees that come along with a mortgage, are there any companies that don't charge?

Wendy x

Pitchshifter

That's about right, it might even be slightly less, I make it £1460 interest over 4 years as the amount changes each year. Thats a pretty good rate.

Cannon_Fodder

1.99% sounds low enough to be a tracker, not a fixed rate, in which case the rate could change in line with Bank of England rate changes - before the end of 4 years it could be quite different to what it is today...