Soon to be made redundant - Do I pay lump sum into mortgage ?

Ninian_Park_Veteran

Hi all,

I think about my mortgage everyday, or more to the point paying it off as soon as possibe. I expect to be made redundant late this year, but will take a reasonable sum of money as a VR payment in the process.

My current mortgage is around 87,000 on a £190k property, I am on a rate of 0.17 above the base rate deal. My current payment is £1136 only because I am over paying by around £350 per month, which has reduced the term (currently) to 6 years 6 months, as opposed to the 10 years 1 month remaining if i wasn't overpaying.

Along with the majority of others on here I want to be mortgage free ASAP and I have worked out that I could pay up to around £7k off the mortgage as a lump sum upon redundancy.

How will this help my aim to be mortgage free sooner ?

Thanks

nickinoo

You need to check whether you will pay any sort of penalty for paying that sort of amount off.

Ninian_Park_Veteran

nickinoo wrote: »

You need to check whether you will pay any sort of penalty for paying that sort of amount off.

No penalty

Peelerfart

There may well be implications from the benefit point of view i.e. JSA.

I

custardy

probably better asking on the benefits board
also,do you have redundancy cover?
because you would be paying money that the policy would pay part of

getmore4less

Mortgae base+0.17 so 0.67%

Instant access savings rate 2.5%+ would be better off saving the money than overpaying.