Pay of mortgage - offer less than owe ?

bugrud

Help - I,m brand new to this and have a fairly simple question - I'm out of any "penalty" phase with my mortgage and about to be made redundant - question should i use my cash to approach my mortgage company to make an offer to pay off my mortgage in one fell swoop - and should i offer less than i owe -say its £75K -what percentage of what i owe should i be offering ? ( if indeed they will even listen ) i would really appreciate some advice and wonder what do all you experts think ? i really would appreciate your help - i'm 56 and unlikely to get a job so dont want this hanging over me - i could manage on my pension ( just ) so its about reducing monthly outgoings - i just wonder ?

The_J

The bank doesn't want you to pay off your mortgage. Interest is how they make money so they aren't going to offer you a discount.

guesswho2000

This would never work, firstly, even a lender of money on a credit card/loan would only consider a reduced offer if the account was severely delinquent, in order to get to that stage you'd have ruined your credit rating anyway.

Secondly, a mortgage is a secured loan, they won't take a reduced offer as they can reposess your house and sell it to get back their money; if there's a shortfall, no problem, they can continue to chase you for it.

So, short answer, no! :beer:

opinions4u

If you're with a high street lender, no chance.

If you're with one of the more obscure lenders that are closed to new business, possibly.

Don't forget any redundancy payments in excess of £30k are subject to income tax - potentially at 40% on some or all of it. You may find that reinvesting it via a company pension scheme would be a better option.

Perhaps time to see an IFA.

McKneff

There is asolutely no reason why you cant get a job at 56.

Are you actually wanting to still go to work.