Mortgage paying off

mondeoglx

We have a £26k mortgage with 4yrs left 2.94% £497 per mth
We have some money which we can pay it all off
But there is a penalty charge of £1300 on the account
We can only pay 10%off as a over payment per yr
Would it be better to pay of the whole amount
Or would it be better just to make the payments with the money which we have and just use that money for the payments till it ends
Any help please

getmore4less

Are you sure it is only 4 years?

£26000 2.94% £497pm is 4y 8m total interest will be £1,858.

With a 5% £1300 penalty you need to make £558 on £26k savings over 56months about £10pm, £120py 0.5% net savings rate should do it.

mondeoglx

Just looked its 4yrs 7 mths and rate is 2.64% many tks

getmore4less

£26000 2.64% £497pm is 4y 7.5m total interest will be £1,653.

With a 5% £1300 penalty you need to make £353 on £26k savings over 55months about £6.5pm, say £80py 0.3% net savings rate should do it.