Paying off mortgage

Drummerswife

I have been ill and am self employed. My Mother has kindly offered to pay off my mortgage of around £38k. Will I have to pay tax on this and can she pay it off directly to the mortgage company? 

FtbDreaming

It will depend if you’re in a fixed rate with early repayment charges. If not then i dont think you pay tax just the erc

davidmcn

No tax involved (though if she dies within 7 years the money will potentially still form part of her estate for Inheritance Tax purposes) and yes anybody can pay directly to your mortgage account.

Check with the lender though what the actual amount needed is to fully pay it off as there may be redemption charges.