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Pay now or during remortgage

Hi all

I have a sum that I would like to pay off my mortgage. The current mortgage company have said I can pay up to £50k now without penalty.

My question is, would there be any benefit to paying the sum of money off the mortgage when i remortgage in a couple of months time, as opposed to paying it now?

Thanks

Andy

Comments

  • edinburgher
    edinburgher Posts: 13,999 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    No, unless you think there's a chance that you will need the money before then.

    With any debt, earlier is better and the fact that you are making such a large payment may mean that you fall into a lower LTV bracket and be eligible for better rates.

    If this turns out to be true, you're slightly better off making an overpayment at the higher interest rate.
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