Paying off your mortgage early? (in full) - the procedure? + Fees involved?

Jane_gs

If you want to pay off your mortgage off in FULL early, do lenders allow this?

and is there a fee involved?

what are the disadvantages involved? do they 'interest' fees still apply ?

harvey115

ERC - Early Repayment Charges

ERC may apply:
- If you are in a Fix deal
- If you are in a tie in period i.e. on a discounted rate etc.

You need to check your Key Facts doc and see if any ERC been mentioned.

Once checked you need to contact your lender and ask them the details of how much penalty amount will be charged if you pay back in full by some date.

Senior_Paper_Monitor

Looking at your two threads my guesss is you have 'come into' a lump sum (inheritance?) and want to buy a bigger house.

I also guess you may have some 'credit issues' ?

Much easier for anyone tryting to help you on here if you give full details in one place, preferably with figures.

The correct answer will depend upon the figures involved.

Porting and redcuing current mortgage may be the solution - paying off and replacing may be the other. This depends on the actual figures and whether you have ERCs (see above) to pay.

As others state elsewhere - the lower the borrowing percentage the better the security for the lender and the better 'deal available' and the less they worry about your credit rating.

Minimum borrowing accepted is based on amount (not the percentage LTV).