re-paying off mortgage

joe134

Hi Guys, bit of advice appreciated.
Long time since I had a mortgage, and thinking of paying Sons off.
He has a SVR with Santander, approx 6 years to go, owing Approx £20k +.
So far, I know nothing about penalties, other than, he's allowed £4k a year, without penalties????
As a rule of thumb, do Santander, hit you with penalties, for full paying off?

[Deleted User]

If he has an ERC on his mortgage, then yes.

TrickyDicky101

If he is on the Standard Variable Rate (SVR) then it is unlikely there will be an Early Repayment Charge for paying the mortgage off. There may be a redemption fee (which pays for the lender's administration costs of removing the charge on the title of the property) - note this is usually measure in the tens or hundreds of pounds.

Your son should confirm this with Santander.

Great Dad! Any chance you'd like to adopt me?

joe134

TrickyDicky101 wrote: »

If he is on the Standard Variable Rate (SVR) then it is unlikely there will be an Early Repayment Charge for paying the mortgage off. There may be a redemption fee (which pays for the lender's administration costs of removing the charge on the title of the property) - note this is usually measure in the tens or hundreds of pounds.

Your son should confirm this with Santander.

Great Dad! Any chance you'd like to adopt me?

Thanks for replies, very grateful.
Got enough expensive kids/grandkids/great grandkids thanks:rotfl:

I don't know if he has an ERC, but will find out.
I remember when I payed mine off. 1987, there was a redemption charge then of £100, so reckon it's a lot more now.


If there is an ERC, then best solution would be to pay max OTT every year for him, reducing it by half, 6>3 years.
Will have a chat with him.:beer:

joe134

joe134 wrote: »

Thanks for replies, very grateful.
Got enough expensive kids/grandkids/great grandkids thanks:rotfl:

I don't know if he has an ERC, but will find out.
I remember when I payed mine off. 1987, there was a redemption charge then of £100, so reckon it's a lot more now.


If there is an ERC, then best solution would be to pay max OTT every year for him, reducing it by half, 6>3 years.
Will have a chat with him.:beer:

EDIT;Does the Bank notify Land Registry of redemption,in with the fees costs,also, does the bank retain the deeds for safe keeping??
Are they stored electronically these days?

Going to get Son to phone bank today, he's just had statement, £18.5K, and coppers reduction for 0.25% base rate cut:

AnotherJoe

joe134 wrote: »

EDIT;Does the Bank notify Land Registry of redemption,in with the fees costs,also, does the bank retain the deeds for safe keeping??
Are they stored electronically these days?
:

Yes.
Any fees will be included in the redemption figure quoted.
No, because as you say, they are stored electronically.