Became unemployed while on mortgage, can I pay it off?

DrCarrot

Hi there,

I’m on a fixed term mortgage due to expire in around a years time, and recently became unemployed. This is unlikely to change between now and the mortgage expert date, and I have continued to make payments out of my savings.

Once the term of my mortgage is over and I switch onto the higher rate with my lender, am I right in thinking that I can pay off my mortgage completely with a big lump sum payment? Haven’t done this before but having come into some money while unemployed I feel like this would be the best course of action, given that it’s likely to be some years before I ever get any sort of income again.

Any help greatly appreciated

molerat

You can pay off the mortgage at any time but there may be a redemption / overpayment penalty during the fixed period.

DrCarrot

Thanks, that was my general thought, there are definitely penalties in my contract for the fixed term, but wasn’t sure whether that applied after it had expired.