redundancy.How to get best out of lender ?

johnlondonw3

Im heading toward redundancy,seems like one option is to use the lump sum to pay off some of the mortgage......the catch is I have a fixed rate and it doesn't expire for another 4 years ( seemed like a good idea at the time !)
Its with the Skipton Building society ,my question is will they let me come out of the fix if I explain my circumstances and not charge me penalty fees ?

Cannon_Fodder

Would expect a Lender to consider each case on its merits, but in general they would want the Ts&Cs adhered to - they fulfilled their part of the deal, and all that. They may offer interest only for a short-term or some other assistance, perhaps.

Until you have another job, is it a good idea to "lock away" your lump sum in the mortgage? You might need it to live off, if it takes a while to get back into work.

How about putting it into ISAs, get upto 3% on it. Keep the lump mostly intact, but drip-feed from the lump to pay the mortgage if you need to?

_Andy_

johnlondonw3 wrote: »

Im heading toward redundancy,seems like one option is to use the lump sum to pay off some of the mortgage......the catch is I have a fixed rate and it doesn't expire for another 4 years ( seemed like a good idea at the time !)
Its with the Skipton Building society ,my question is will they let me come out of the fix if I explain my circumstances and not charge me penalty fees ?

No, they won't.

dimbo61

If you do get another job quickly you could use the redundancy money to overpay the mortgage!
Check the T & C,s of the mortgage offer re overpayments. to see what is allowed.
Fill cash ISA,s for yourself and OH ? and good luck on the job hunting front.

johnlondonw3

Thanks everyone for you advice .....I'll ring them and see what they've got to say........Im pretty sure I can pay off 10% each year without penalty