Advice needed over old interest-only mortage please!

rellarips

Hi,

I'm hoping someone can help as I am so clueless about mortgages and particularly over my own. I took out a mortgage with Northern Rock back in 1992 when I was just 19, and I've been paying it all these years. It was backed up by an endowment (yes, falling short by 50% and sold by an independent financial advisor). Anyway, by the by, I am due to recieve inheritance via my late mother very soon - just enough to pay back my mortgage money from it. The thing is, I'm not entirely sure if this will be the best option, but in six years I will have to find the endowment short fall anyway...
I have zero information from my mortgage all those years ago now so I don't know the get-out clauses or anything, but I fully expect them to slap a charge on me.

Any advice would be really appreciated, I really don't want to make a bad decision over this. Thanks

opinions4u

I have zero information from my mortgage all those years ago now so I don't know the get-out clauses or anything, but I fully expect them to slap a charge on me.

How can anybody make valid suggestions based on the lack of information?

Trentenders

Either take a few minutes to look through your old paperwork, or phone your mortgage company on Monday.

macman

There can't be many people around who haven't switched their mortgage in 19 years? I doubt there is any early repayment charge on such an old product, but your annual mortgage statement should tell you all you need to know.
Your decision as to whether to pay it off early will be based on what you are paying in interest at present, and what your inheritance might earn in interest if invested elsewhere-only you will have the figures.

rellarips

Thanks for the helpful reply macman. The mortgage was not for a large sum, and so I've never had big repayments. I don't think switching would have made a big difference as I was lucky to buy my little place before the prices went through the roof. The only correspondance I ever get about my mortgage is a simple statement of payments and balance, much like a bank statement, and I took a look to see if there was any more information. I guess yours and Trentenders suggestion to call them is all I can really do. I had it in my mind that if they charged me a ridiculous amount to end the mortgage, it might be an option to move the mortgage to a repayment type.

Thanks macman and Trentenders, I thought it might be a big ask on such scant information

John424

All depends on whether you can earn more interest with the money stashed away else where compared to paying off your mortgage. You'll probably be able to pay off at least 10% per year with no penalty but I reckon you could pay more off as you have had the loan ages.