I want a morgage that lets me pay it off early

nelly_2

Is there a particular type of mortgage that lets you pay it off early , and by that I mean one that does'nt sting you with charges for doing so.

Any one know a type or a particular lender that lets you reap the rewards by doing this please?

A sort of variable payment thing I am after as I am self employed and have some very good weeks and some average weeks.
Thanks Nelly

kinster_2

There's plenty around that don't have redemption penalties. These can be flexible or tracker mortgages that allow overpayments...

YorkshireBoy

nelly wrote:

Is there a particular type of mortgage that lets you pay it off early , and by that I mean one that does'nt sting you with charges for doing so.

Any one know a type or a particular lender that lets you reap the rewards by doing this please?

A sort of variable payment thing I am after as I am self employed and have some very good weeks and some average weeks.
Thanks Nelly

We've been with Yorkshire Building Society (YBS) for 18 of our 23 year mortgage period. For the last 4 years we've had an =BOE tracker (currently 4.75%). This product/lender lets you make unlimited overpayments, and calculates interest daily (the sooner in the month you put in your extra amounts from your "very good weeks" the less interest is charged).

I do believe now though that all lenders are increasing their arrangement/booking fees to recover monies lost on the current deals. For example, when our last deal ended, we switched to a new product last October (went from BOE-0.15% to =BOE). As their best "fee-free" deal was BOE+0.55%, we ended up paying £325 fees to "save" £550 over the last 2 years of our mortgage. I think this re-mortgage arrangement fee is now around £500 + any legal/survey fees if you're going in as a new borrower.

There are many other lenders who could help you. I tried Nationwide last year but they had a 10%/annum limit on overpayments and we wanted to pay off around 15%/annum.

In summary, I'd recommend YBS (for both value and customer service) but do your sums first before jumping in with anyone.

HTH
YB

nelly_2

which would be best? one that caculates interest daily, monthly or yearly?
In respect of overpayments that is

YorkshireBoy

nelly wrote:

which would be best? one that caculates interest daily, monthly or yearly?
In respect of overpayments that is

DAILY - every time!!!!!!!!!!!!!!!

JayS_3

Hi Nelly

Check out Martin's advice, orange menu, articles, mortgages - loads of information, where to find what you want etc etc

One helpful link is: http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1101649966,86816,

Best wishes

JayS

nelly_2

YorkshireBoy wrote:

DAILY - every time!!!!!!!!!!!!!!!

I dont really get that. I'm certainly not questioning your advice, its just in my head I'm thinking if you pay loads off in a year, then next years would be a lot less, any chance of explaining how it works?

You can tell I'm only a plasterer ca'nt you

YorkshireBoy

nelly wrote:

I dont really get that. I'm certainly not questioning your advice, its just in my head I'm thinking if you pay loads off in a year, then next years would be a lot less, any chance of explaining how it works?

You can tell I'm only a plasterer ca'nt you

Not easily, accurately, or quickly! Best to do as another poster has suggested and look around this site.

Also, take a look at the lenders websites...

https://www.ybonline.co.uk
https://www.ybs.co.uk
https://www.nationwide.co.uk

HTH
YB

Reaper

It's a minor detail, but when companies like YBS say "No redemption penalty" that's not actually true.

Using the YBS example they charge a Redemption administration fee (previously known as Discharge fee) of £199. Now last time I checked this was waived if your mortgage lasted the full term.

In others words there is a penalty for paying off your mortgage early despite what they say. I have an offset mortgage with them and I am planning to pay it off early but leave £1 on it plus £1 in my offset. That should annoy them!

Not a problem if you are aware of it but I think very few are. You can find a list of all the YBS hidden charges on this page.

luckyfool

Reaper wrote:

It's a minor detail, but when companies like YBS say "No redemption penalty" that's not actually true.

AFAIK all lenders charge a similar fee ranging from £90 ish with Nationwide up to £295 with Alliance and Leicester. Until recently Nationwide were the only lender without such a fee but have recently put one into place.

Some lenders like Halifax will waive the fee if you have been with them for a certain length of time such as 8 years. I would welcome being corrected but as far as I know there is not a lender one the market who will redeem a mortgage in full with no penalties, admin charges or deeds release fees.

payless

Lucky

Have you a weblink to something about the Nationwide fee

I can't find anything on their site
Its not showing up on their illustrations
My local N/W mortgage centre claim to know nothing about it