Paying off mortgage but penalty

akkers

I have a fixed rate mortgage (2%) which has 2 years left with about £5K outstanding.
I called the bank with a view to paying that £5K off and they said I would have to pay £500 early redemption fee.
If my maths is correct, if I carry on paying the mortage as usual for the next 2 years the interest would be much less that £500. So, whats the point of paying off early, me thinks.
However, if I was to pay a substantial amount off (say £4800) and leave the mortgage running with only only £200 left owing, I would avoid the early redemption fee and a lot of interest.
Is this do-able? Will the bank let me do this?

strawb_shortcake

You can usually pay 10% off per year whilst on a fixed deal so in your case you'd likely have early redemption for any over payment above £500