Final payment query

vecoie

Hi

I've recently came into an inheritance payment and would like to pay off my mortgage. I've been told to ask my lender (Halifax) for a full and final payment offer in order to pay a reduced balance. It's the first I have heard of this.

Has anyone ever went down this route?
If so what sort of discount was given?
Did it affect your credit rating?

Any help would be greatly appreciated. Thanks in advance.

dimbo61

Think you have got this wrong.
You can ring your lender and ask for the outstanding balance that is still owing.
The sooner you pay the less interest you pay.
Discount Some Hope

Lilla_D

I agree. Yesterday someone said on here that if they took a £20k mortgage, then they'd have to pay £26k in total by the end of the term. The question was whether they had to pay this £26k if they repaid the mortgage early. The answer was no: you only pay interest until the time you repay the mortgage and you pay the outstanding balance, not the interest the bank would have got from you had you stayed the full term. If you ask Halifax for a settlement statement, they will tell you the current outstanding balance and any admin fee you might have to pay for closing your account.