Should I finish mortgage and pay redemption fee?

sabreflyer

Hi All,
I find myself in the position of having enough money to pay off the mortgage early if I wanted and I am tempted by the thought of doing so. Currently I owe 52K over ten years remaining of the mortgage and I am in a 3 year fix at 2.49% due to end on the 30/6/2018.The fee for early redemption is around £1000 now or £500 if I wait until next July 2017.
Would it be worthwhile paying off the mortgage and paying the extra £1000? Or waiting until next year and paying the £500? Would I save on the interest payments? Or should I just pay the interest for the next two years and then pay off at the end of the fix?

Many thanks for any replies, I do appreciate the advice.

evansc1

Believe you'll be paying £1,080 or so in interest for the coming year (July-July).

If your Exit fee is only £1,000, best off getting out now given you have the funds as you'll end up paying that amount in interest anyway!

scottishblondie

If you are allowed to overpay an amount without penalty (usually 10% but varies by lender) then I would do that first. It should reduce the amount of the ERC.

sabreflyer

Thanks for your replies.

Yes, Scottishblondie, I have already paid the 10% overpayment for this year and was planning to do the same next year. It is partly because I have regularly overpaid that I find myself in the position to pay off the mortgage and have been wondering if the I can save on interest or if the redemption fee is the same anyway. Maybe they calculate the redemption fee to equal the interest?
Evansc1; I am interested in your calculation of interest of £1080 for July to July. This would suggest that I would save the interest of the final year of the fix? If not then, How do I calculate what the interest is on each year of the fix (the next two years)?
Many thanks for your replies, never been good with mortgages so I do appreciate it and it really helps.